Premier African Minerals Limited Placing and Fully Funded RHA Drilling Programme (6783X)
14 August 2018 - 4:00PM
UK Regulatory
TIDMPREM
RNS Number : 6783X
Premier African Minerals Limited
14 August 2018
Premier African Minerals Limited / Ticker: PREM / Index: AIM /
Sector: Mining
For immediate release
14 August 2018
Premier African Minerals Limited
Placing and Fully Funded RHA Drilling Programme
The Board of Premier African Minerals Limited ("Premier" or the
"Company") is pleased to announce a placing today to raise
GBP750,000 before expenses at an issue price of 0.18 pence per new
ordinary share. It has been clear for some time that Premier would
need to supplement working capital, in part to support costs
associated with the restructuring and ongoing holding costs of the
RHA Tungsten Mine ("RHA"), which remain vital to bringing RHA back
into production expeditiously.
Further to yesterday's announcement which sets out that
Premier's proposal has been favourably received by the relevant
Ministries, the Company is looking to de-risk the development of
RHA. As such, Premier will begin mobilising the driller with the
aim to commence a drilling programme of up to 2,750 meters as soon
as possible with the objective of expanding the Resource base as
well as increasing the confidence levels of both the open pit and
underground Resources. The Company will provide regular updates on
this drilling programme.
In addition, the Company and its technical consultants are
finalising an assessment of the wolframite Resources contained in
the tailings facility of RHA. Premier expects to publish an updated
technical report shortly.
This placement will see Premier fully funded in regard to
working capital until December 2018, without any dependency on
revenue generated from a possible early return to production,
targeted at 6,000 tonne per month at RHA. At the same time, Premier
is actively seeking the appointment of a new full time Finance
Director and is implementing a series of internal cost cutting
measures to reduce the overheads of the Company.
George Roach, CEO of Premier, stated: "This placement gives
Premier a head start at RHA and provides the working capital
necessary for the group as a whole. Being able to get the
additional drilling started immediately at RHA is likely to add
further value to the mine and will guide efficient and effective
back-to-production strategies. With the Zulu Lithium and Tantalum
Project nearing the completion of the Due Diligence period, I look
forward to updating the market on the proposed investment by
Cadence.
At the same time, we have re-examined our bulk test on historic
tailings at RHA and are confident that with improved tungsten
prices at present, we are able to expedite reopening of operations
using tailings as a supplemental ore feed."
Placing
Premier has today issued by way of a placing ("Placing"),
conditional on admission, 416,666,667 new ordinary shares of 0.1
pence each ("Placing Share") at a Placing price of 0.18 pence per
Placing Share. The Placing Shares will, when issued, rank pari
passu in all respects with the existing ordinary shares.
Application has been made for the Placing Shares to be admitted to
trading on AIM and admission is expected to take place on or around
17 August 2018. The Placing has been undertaken within the
Company's existing share authorities. The proceeds of the Placing
will used to fund exploration and development activities at RHA as
detailed above and provide additional general working capital
necessary for the group as a whole.
Total Voting Rights
Following the issue of the Placing Shares, the Company's issued
share capital consists of 7,239,603,037 Ordinary Shares, with
voting rights. This figure may be used by shareholders in the
Company as the denominator for the calculation by which they will
determine if they are required to notify their interest in, or a
change to their interest in, the share capital of the Company under
the Financial Conduct Authority's Disclosure and Transparency
Rules.
Special note concerning the Market Abuse Regulation
This announcement contains inside information for the purposes
of Article 7 of the Market Abuse Regulation (EU) No 596/2014
("MAR"). Market soundings, as defined in MAR, were taken in respect
of the Placing, with the result that certain persons became aware
of inside information, as permitted by MAR. That inside information
is set out in this announcement. Therefore, those persons that
received inside information in a market sounding are no longer in
possession of inside information relating to the Company and its
securities.
Enquiries:
Premier African Minerals Tel: +44 (0)7734
Fuad Sillem Limited 922074
Michael Cornish / Beaumont Cornish Limited Tel: +44 (0) 20 7628
Roland Cornish (Nominated Adviser) 3396
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Jerry Keen/Edward Shore Capital Stockbrokers Tel: +44 (0) 20 7408
Mansfield Limited 4090
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Brandon Hill Capital Tel: +44 (0) 20 3463
Jonathan Evans Limited 5000
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Notes to Editors:
Premier African Minerals Limited (AIM: PREM) is a
multi-commodity mining and natural resource development company
focused on Southern Africa with its RHA and Zulu projects in
Zimbabwe.
The Company has a diverse portfolio of projects, which include
tungsten, rare earth elements, lithium and tantalum in Zimbabwe,
encompassing brownfield projects with near-term production
potential to grass-roots exploration. In addition, the Company
holds 5,010,333 shares in Circum Minerals Limited ("Circum"), the
owners of the Danakil Potash Project in Ethiopia, which has the
potential to be a world class asset. Premier also has an interest
in Arc Minerals that has a number of mineral assets in Europe and
Africa.
Forward Looking Statements:
Certain statements in this announcement are or may be deemed to
be forward looking statements. Forward looking statements are
identi ed by their use of terms and phrases such as "believe"
"could" "should" "envisage" "estimate" "intend" "may" "plan" "will"
or the negative of those variations or comparable expressions
including references to assumptions. These forward-looking
statements are not based on historical facts but rather on the
Directors' current expectations and assumptions regarding the
Company's future growth results of operations performance future
capital and other expenditures (including the amount. nature and
sources of funding thereof) competitive advantages business
prospects and opportunities. Such forward looking statements re ect
the Directors' current beliefs and assumptions and are based on
information currently available to the Directors. Many factors
could cause actual results to differ materially from the results
discussed in the forward-looking statements including risks
associated with vulnerability to general economic and business
conditions competition environmental and other regulatory changes
actions by governmental authorities the availability of capital
markets reliance on key personnel uninsured and underinsured losses
and other factors many of which are beyond the control of the
Company. Although any forward-looking statements contained in this
announcement are based upon what the Directors believe to be
reasonable assumptions. The Company cannot assure investors that
actual results will be consistent with such forward looking
statements.
This announcement contains inside information for the purposes
of Article 7 of EU Regulation 596/2014.
ENDS
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contact rns@lseg.com or visit www.rns.com.
END
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