US$350,000 Loan Note Funding

RNS Number : 9653C

Premier African Minerals Limited

21 June 2019

 

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

For immediate release

21 June 2019

Premier African Minerals Limited

US$350,000 Loan Note Funding

The Board of Premier African Minerals Limited ("Premier" or the "Company") is pleased to report that the Company has issued a convertible loan note for US$350,000 with Regent Mercantile Holdings Limited.

George Roach CEO, commented that, "Premier is pleased to have received this offer of support in this form from an independent source who first invested and supported Premier at its original listing.

I have remarked on the need for our Company to plan for alternative support and to look for further diversification of risk and I do expect this to be one of several key developments in the immediate future."

Terms of the Loan

The Company has today entered into a secured US$350,000 Loan Agreement ("Loan Agreement") and related Subscription Agreement (together, the "Convertible") with Regent Mercantile Holdings Limited ("Regent"). The annual interest rate payable on the outstanding loan amount is 10% per annum. The principal amount of US$350,000 will be made available to the Company in one advance with no deductions. No warrants have been issued to Regent under the Convertible.

The principal amount (plus any accrued interest) under the Loan Agreement is repayable in two equal payments on 1 August 2019 and 1 September 2019. Failing direct repayment of the loan by Premier, Regent at its sole discretion may convert any percentage of a repayment within applicable share authorities into new Premier shares at a conversion price equal to 90 per cent. of the daily volume weighted average price ("VWAP") during the five days trading days immediately prior to the relevant repayment date.

The Loan Agreement is subject to normal events of default and the Company has provided a number of standard warranties and undertakings to Regent in respect of the Group. The Loan Agreement is secured over 350,000 shares of Circum Minerals Limited held by Premier.

The proceeds of the Loan Agreement will be used for to support the ongoing development and general working capital of the Company.

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]
Tom Curran/Elliot Hance	SVS Securities 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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