Last checked at 9 Nov 2018 07:00
Premier African Minerals Limited / Ticker: PREM / Index: AIM / Sector: Mining
For immediate release
9 November 2018
Premier African Minerals Limited
Amendment of Loan Agreement
Premier African Minerals Limited ("Premier" or the "Company") is pleased to announce that the Board has reached an agreement to amend the terms of the existing loan agreement ("Loan") entered with a company owned by a Trust of which George Roach is a beneficiary for gross value of US$300,000 as announced on 5 June 2018.
The initial maturity of 60 days was extended until 30 November 2018 as announced on 27 June 2018. The Loan is secured against the Company's shareholding of 6,128,822 shares in ARC Minerals Limited ("Arc") and the Company had agreed to underwrite any reasonable shortfall following the sale of the shares, should this be necessary ("Security"). At the last closing Arc's market price of 3.55p, the value of the Security was approximately £0.217 million.
The lenders have now agreed to cancel the Security in return for the grant of conversion rights with respect to the entire Loan amount. The Company has agreed therefore that the Loan can be converted into new ordinary shares at any time on or before the maturity date at the lesser of the Volume Weight Average Price for the five trading days immediately prior to the date of conversion or the closing price of the Premier's shares on the day preceding this announcement.
This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014. The person who arranged the release of this announcement on behalf of the Company was Michal Foster.
This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.
Enquiries:
Fuad Sillem | Premier African Minerals Limited | Tel: +44 (0)7734 922074 |
Michael Cornish / Roland Cornish | Beaumont Cornish Limited (Nominated Adviser) | Tel: +44 (0) 20 7628 3396 |
Jerry Keen/Edward Mansfield | Shore Capital Stockbrokers Limited | Tel: +44 (0) 20 7408 4090 |
Jonathan Evans | Brandon Hill Capital Limited | Tel: +44 (0) 20 3463 5000 |
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 identified 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 reflect 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.
ENDS