Conversion of loan note and issue of equity

RNS Number : 9168H

Premier African Minerals Limited

03 December 2015

 

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

For immediate release

3 December 2015

Premier African Minerals Limited ("Premier" or "the Company")

Conversion of loan note and issue of equity 

Premier African Minerals Limited, the AIM-traded, multi-commodity mining and resource development company focused on Southern and Western Africa, announces that on 30 November 2015 it received a notice of exercise by Darwin Capital Limited ("Darwin") to convert in aggregate £567,500 loan notes into equity ("Conversion Notice") and that the Company has elected to meet the second tranche payment of US$50,000 due to NIEEF, (as announced on 2 October 2015) through an issue of new ordinary shares.

The loan notes have been used to part fund the re-opening of underground operations at RHA Tungsten (Private) Limited ("RHA"), Premier African Mineral's tungsten project located in Zimbabwe and for general working capital purposes. Premier is the operator of RHA and holds a 49% interest.

Premier, at its election, has the right to redeem one or all of the outstanding loan notes in cash at 105% of the Par Value (equivalent to £26,250 per loan note).

The loan notes are convertible at Darwin's election into new Ordinary Shares in Premier at the conversion price, being the lesser of the subscription issue price or 90% of the arithmetic average of the five daily volume weighted average share price per Ordinary Share preceding conversion. The Conversion Notice was made in respect of £367,500 loan notes issued in April 2015 (outstanding balance £1,300,000), £50,000 loan notes issued in October 2015 (outstanding balance £nil) and £150,000 loan notes issued in November 2015 (outstanding balance £25,000) amounting in aggregate to £567,500.

The Company has therefore issued today 118,535,383 new Ordinary Shares to Darwin ("Darwin Shares") at an issue price of 0.47876p.

The Company has elected to meet the second tranche payment of US$50,000 due to NIEEF through an issue of new ordinary shares. Accordingly, the Company has today issued, conditional on admission, 7,017,447 new ordinary shares ("NIEFF Shares") to NIEEF at an issue price of 0.47p.

The Darwin Shares and the NIEFF Share (together the "New Shares") will rank pari passu in all respects with the existing ordinary shares. Application will be made for the New Shares to be admitted to trading on AIM and admission is expected to take place on or around 8 December 2015.

Following the issue of the New Shares, the Company's issued share capital consists of 916,629,696 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.

For further information please visit www.premierafricanminerals.com or contact the following:

Pamela Hueston	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]
Dominic Barretto/Aidan Stanley/Charles Goodwin	Yellow Jersey PR Ltd	Tel: [phone]

Notes

Premier African Minerals Limited (AIM: PREM) is a multi-commodity mining and resource development company focused in Southern and Western Africa with production started at its flagship RHA Project in Zimbabwe.

The Company has a diverse portfolio of projects, which include tungsten, rare earth elements, gold, lithium and tantalum in Zimbabwe and Togo, encompassing brownfield projects with near-term production potential to grass-roots exploration. The Company holds 2 million shares in Circum Minerals Ltd ("Circum"), the owners of the Danakil Potash Project in Ethiopia, which has the potential to be a world class asset. At present those shares are valued at US$4 million based on the latest price at which Circum has accepted subscriptions.

 

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