Extension of Loan Repayment

RNS Number : 1130L

Premier African Minerals Limited

04 September 2019

 

Premier African Minerals Limited / Ticker: PREM / Index: AIM / Sector: Mining

For immediate release

4 September 2019

Premier African Minerals Limited

Extension of Loan Repayment

The Board of Premier African Minerals Limited ("Premier" or the "Company") is pleased to report that the Company and Regent Mercantile Holdings Limited ("Regent") have agreed to extend the repayment terms of the convertible loan note for US$350,000 entered into on the 21 June 2019.

George Roach CEO, commented that, "We are appreciative of this amended agreement with Regent. The Loan Agreement was always concluded on helpful and supportive terms and this extension underlines that."

Terms of the Loan

Under the terms of Loan Agreement ("Loan Agreement") and related Subscription Agreement (together, the "Instrument") subscribed with Regent, Premier was required to make to two equal payments on 1 August 2019 and 1 September 2019. Failing direct repayment of the Loan Agreement by Premier, Regent at its sole discretion was allowed to convert any percentage of a payment into new Premier shares at a conversion price equal to 90 per cent. of the daily volume weighted average price during the five days trading days immediately prior to the relevant payment date ("Conversion Price").

The parties have agreed that Premier will have until 31 January 2020 ("Period") to repay the principal amount including any interest under the Loan Agreement. In consideration of the repayment extension for the Period, Regent will have the right, in its absolute discretion, to elect a Conversion of the Principal Amount, including all outstanding interest thereon during the Period at the Conversion Price. Upon the expiry of the Period, unless otherwise agreed in writing between the parties, Premier will have 5 days to settle any outstanding amounts under the Loan Agreement, including all outstanding interest thereon.

The Instrument will remain subject to the agreed normal events of default and the Company has provided several standard warranties and undertakings to Regent in respect of the Group. The Loan Agreement will continue to be secured over 350,000 shares of Circum Minerals Limited held by Premier.

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 George Roach.

Enquiries:

Fuad Sillem	Premier African Minerals Limited	Tel: [phone]
Michael Cornish / Roland Cornish	Beaumont Cornish Limited (Nominated Adviser)	Tel: [phone]
Jerry Keen/Edward Mansfield	Shore Capital Stockbrokers Limited	Tel: [phone]

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, 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.

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.  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.

 

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