Placing and Funding of Zulu DFS Drill Programme

RNS Number : 6518A

Premier African Minerals Limited

03 June 2021

 

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

For immediate release

3 June 2021

Premier African Minerals Limited

Placing and Funding of Zulu DFS Drilling Programme

The Board of Premier African Minerals Limited ("Premier" or the "Company") is pleased to announce a placing today to raise £1,000,000 before expenses at an issue price of 0.16 pence per new ordinary share for the ongoing Definitive Feasibility Study ("DFS") at the Company's Zulu Lithium project in Zimbabwe ("Zulu").

George Roach, CEO commented : "The detailed planning, construction of the exploration camp, road repairs and location of equipment to site, and other work associated with the resource expansion and definition drilling for the DFS at Zulu is progressing and to date has been funded from Premier's retained cash resources. This placement is intended to ensure two definitive objectives.

· That there is no interruption to the work in progress at Zulu, and

· Allow additional time to both enhance value through the DFS, and comprehensively and without any pressure assess other options available to fund the balance of the DFS.

It is worth noting that this placement today represents a nominal dilution of approximately 3.5% and is a small price to pay for retention of 100% of Zulu and the potential upside from the Exclusive Prospecting Order.

I expect to report details of early drilling later this month together with updates on RHA Tungsten Private Limited, MN Holding Limited, Circum Minerals limited and other developments."

Placing

Premier has today issued by way of a placing ("Placing"), conditional on admission, 625,000,000 new ordinary shares of nil par value ("Placing Shares") at a Placing price of 0.16 pence per Placing Share. The Placing Shares will, when issued, rank pari passu in all respects with the existing ordinary shares. Monecor (London) Ltd, trading as ETX Capital ("ETX Capital"), acted as the Company's sole placing agent in respect of the Placing.

Application will be made for the Placing Shares to be admitted to trading on AIM and admission is expected to take place on or around 9 June 2021.

The Placing has been arranged within the Company's existing share authorities. Premier intends to use the proceeds of the Placing to assist with the funding of the ongoing drilling at Zulu for the DFS and general working capital purposes necessary for the Group.

Total Voting Rights

Following the issue of the Placing Shares, the Company's issued share capital consists of 18,418,009,831 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.

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 George Roach.

Enquiries:

George Roach	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]
Matthew Bonner	EAS Advisors LLC	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. The Company holds 5,010,333 shares in Circum Minerals Limited, the owners of the Danakil Potash Project in Ethiopia, which has the potential to be a world class asset.

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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