Last checked at 9 Aug 2023 18:00
For immediate release
9 August 2023
Premier African Minerals Limited
Director Loan Update
On 20 July 2023 Premier African Minerals Limited ("Premier" or the "Company") announced that the Company had entered into a loan facility agreement with George Roach ("Lender") for up to £1.7 million ("Facility").
Premier and the Lender have today agreed to vary the Facility by increasing the size of the Facility from £1.7 million to £2 million and to waive any interest on a repayment by Premier of the Facility in cash ("Amended Facility"). Premier and the Lender have further agreed that Premier will make one request of a draw-down under the Amended Facility in the amount of £2 million.
As George Roach is a related party under the AIM Rules, the Facility and the Amended Facility (together the "Loan") are related party transactions for the purposes of AIM Rule 13. The independent directors (being the Board other than George Roach) have been consulted on the Loan. Accordingly, the independent directors, having consulted with the Company's Nominated Adviser, consider that the Facility and the Amended Facility are fair and reasonable in so far as the Company's shareholders are concerned.
The Independent Directors have in particular noted that the Loan is unsecured, there are no arrangement fees, and as previously announced, the Company needs funding to meet its immediate working capital needs. The Independent Directors have noted furthermore that with the waiver of interest under the Amended Facility, there is no direct monetary benefit to the Lender under the Loan.
As previously announced, the Loan will be used for otherwise unfunded general working capital purposes including ongoing operational expenses at Zulu pending the completion of the remedial work on the plant and the commencement of commercial production.
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.
The person who arranged the release of this announcement on behalf of the Company was Godfrey Manhambara.
Enquiries:
George Roach | Premier African Minerals Limited | Tel: +27 (0) 100 201 281 |
Michael Cornish / Roland Cornish | Beaumont Cornish Limited (Nominated Adviser) | Tel: +44 (0) 20 7628 3396 |
Douglas Crippen | CMC Markets UK Plc | Tel: +44 (0) 20 3003 8632 |
Toby Gibbs/Rachel Goldstein | Shore Capital Stockbrokers Limited | Tel: +44 (0) 20 7408 4090 |
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.
In addition, the Company holds a 19% interest in MN Holdings Limited, the operator of the Otjozondu Manganese Mining Project in Namibia.
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