TIDMPREM
RNS Number : 3578W
Premier African Minerals Limited
11 December 2023
Premier African Minerals Limited / Ticker: PREM / Index: AIM /
Sector: Mining
For immediate release
11 December 2023
Premier African Minerals Limited
Funding of Zulu Project and Update
The Board of Premier African Minerals Limited ("Premier" or the
"Company") is pleased to announce a subscription today to raise
GBP2.4 million before expenses at an issue price of 0.23 pence per
new ordinary share for the Zulu Lithium and Tantalum Project
("Zulu").
The Company is on track to target revenue generating production
by February 2024 following the installation of the 55 tons per hour
ball mill and other associated structures which is expected to be
completed by late January/early February 2024.
In addition, the Company has today conditionally settled payment
of US$2.5 million (equivalent to GBP2 million) in invoices through
the issue of 769,230,769 new ordinary shares of the Company to Zulu
open pit mining contractor, JR Goddard Contracting (Pvt) Ltd,
issued at a price of 0.26 pence per new ordinary share .
George Roach, CEO, commented , "The subscription and the
contractor settlement should see Zulu through to production in
February 2024.
We are deeply encouraged that the subscription was taken up by
two institutional investors with one of the investors having
supported the Company previously. We believe that the attraction of
further institutional investment into Premier demonstrates the
underlying value of Premier.
We would be remiss if we did not also express our appreciation
to our Mining Contractor for their willingness to accept settlement
of invoices in Premier shares".
Subscription
Premier has today issued by way of a direct subscription
("Subscription"), conditional on admission, 1,043,478,261 new
ordinary shares of nil par value ("Subscription Shares") at a
Subscription price of 0.23 pence per Subscription Share. The
Subscription Shares will, when issued, rank pari passu in all
respects with the existing ordinary shares. The direct subscription
was arranged by Fox-Davies Capital Limited with just two
participating institutions.
Application will be made for the Subscription Shares to be
admitted to trading on AIM and admission is expected to take place
on or around 15 December 2023.
The Subscription has been arranged within the Company's existing
share authorities. Premier intends to use the proceeds of the
Subscription principally to assist with the ongoing mining
operations at Zulu including the necessary works for installation
of the 55 tons per hour ball mill with its associated structures
and general working capital.
Contractor Settlement
As previously announced on 25 August 2023, Zulu open pit mining
contractor, JR Goddard Contracting (Pvt) Ltd ("JRG") had agreed to
accept payment of a limited number of future invoices until the end
of December 2023, now extended to when commercial shipments begin
at Zulu in Q1 of 2024, in new ordinary shares of the Company at the
closing middle market price on the day prior to settlement.
Accordingly, the Company has today conditionally settled payment of
US$2.5 million (equivalent to GBP2 million) in invoices through the
issue of 769,230,769 new ordinary shares of the Company at the
price of 0.26 pence ("Settlement Shares").
The issue of the Settlement Shares is conditional on the written
confirmation that JRG has received Exchange Control Approval from
the Reserve Bank of Zimbabwe for receipt of the Settlement Shares
("Condition Precedent"). Application will be made for the
Settlement Shares to be admitted to trading on AIM in due
course.
Any sales of the Settlement Shares will be handled by Premier's
brokers under orderly market conditions with an initial 20-day
lockup of the Settlement Shares following the date that the
Conditional Precedent is satisfied.
Total Voting Rights
Following the issue of the Subscription Shares, the Company's
issued share capital consists of 26,916,580,705 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.
Market Abuse Regulations
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulations (EU) No. 596/2014 as it forms part of
UK Domestic Law by virtue of the European Union (Withdrawal) Act
2018 ("UK MAR").
The person who arranged the release of this announcement on
behalf of the Company was George Roach.
A copy of this announcement is available at the Company's
website, www.premierafricanminerals.com
Enquiries:
Premier African Minerals Tel: +27 (0) 100
George Roach Limited 201 281
Michael Cornish / Beaumont Cornish Limited Tel: +44 (0) 20
Roland Cornish (Nominated Adviser) 7628 3396
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Tel: +44 (0) 20
Douglas Crippen CMC Markets UK Plc 3003 8632
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Toby Gibbs/Rachel Shore Capital Stockbrokers Tel: +44 (0) 20
Goldstein Limited 7408 4090
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Tel: +44 (0) 20
Jerry Keen Fox-Davies Capital Limited 3884 7447
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Important Notice
Beaumont Cornish Limited ("Beaumont Cornish"), which is
authorised and regulated in the United Kingdom by the Financial
Conduct Authority, is acting as nominated adviser to the Company in
connection with the Subscription and will not regard any other
person as its client and will not be responsible to anyone else for
providing the protections afforded to the clients of Beaumont
Cornish or for providing advice in relation to such proposals.
Beaumont Cornish has not authorised the contents of, or any part
of, this announcement and no liability whatsoever is accepted by
Beaumont Cornish for the accuracy of any information or opinions
contained in this announcement or for the omission of any
information. Beaumont Cornish as nominated adviser to the Company
owes certain responsibilities to the London Stock Exchange which
are not owed to the Company, the Directors, shareholders or any
other person.
Fox-Davies Capital Limited is authorised and regulated by the
FCA in the United Kingdom and is acting exclusively for the Company
and no one else in connection with the Subscription and will not be
responsible to anyone (including any Subscriber) other than the
Company for providing the protections afforded to its clients or
for providing advice in relation to the Subscription or any other
matters referred to in this announcement.
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. A number of
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.
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 Tungsten and Zulu Lithium
projects in Zimbabwe.
The Company has a diverse portfolio of projects, which include
tungsten, rare earth elements, lithium and tantalum in Zimbabwe and
lithium and gold in Mozambique, encompassing brownfield projects
with near-term production potential to grass-roots exploration. The
Company has accepted a share offer by Vortex Limited ("Vortex") for
the exchange of Premier's entire 4.8% interest in Circum Minerals
Limited ("Circum"), the owners of the Danakil Potash Project in
Ethiopia, for a 13.1% interest in the enlarged share capital of
Vortex. Vortex has an interest of 36.7% in Circum.
Ends
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