Issue of equity and Proposed Conversion of loan

RNS Number : 7099N

Premier African Minerals Limited

02 February 2016

 

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

For immediate release

2 February 2016

Premier African Minerals Limited

("Premier" or the "Company")

Issue of equity and Proposed Conversion of loan

Premier African Minerals Limited is pleased to announce:

·     The direct subscriptions for £310,200 of new ordinary shares to complete underground developments needed before profitable production at RHA is anticipated;

·     RHA remains on target to anticipated profitable production this Spring; and

·     Proposed conversion of all outstanding direct loans from George Roach to Premier amounting to £172,824, including accrued interest, into new ordinary shares in the company.

Premier African Minerals Limited, the AIM-traded, multi-commodity mining and resource development company focused on Southern and Western Africa, is pleased to announce that it has received direct subscriptions for £310,200 of new ordinary shares. The subscription funds will be used for the completion of the existing phase of underground mining development at the RHA Tungsten Mine ("RHA") in Zimbabwe, of which Premier is the operator and holds a 49% interest, and for general working capital. In addition, the Company's Chairman and CEO, George Roach also proposes to elect to convert the balance of his loan plus accrued interest in the amount of US$247,000 (£172,824) to Premier in accordance with the terms of the loan into new ordinary shares in the Company.

George Roach, Chairman and CEO commented:

"With these subscriptions, there are no obstacles in bringing the underground developments on the lower levels of RHA into production as well as final plant fixes. RHA has been mining from the existing adit level since November 2015 and has the first full month ROM tonnage ready to feed. Final equipping of the existing shaft is progressing on schedule. Residual concerns in regard to water availability in the present drought in Southern Africa have been adequately allayed through recommissioning of extensive above ground storage for accumulated water in the lower levels of the mine and better supply management. Subject to grade, throughput and recoveries meeting expectations, we remain on target to operate profitably at RHA this Spring."

The Company has today issued, conditional on admission, 119,307,692 new ordinary shares ("Subscription Shares") at a subscription price of 0.26 pence per Subscription Share (the "Subscription").

Following loan conversions by George Roach of, in aggregate US$794,119, as previously announced, the outstanding amounts of the loans amount to US$247,000 including accrued interest up to today's date. The balance of the loans convert into new ordinary shares at the five trading day volume average price of the ordinary shares immediately preceding any notice of conversion.

The Subscription Shares will, when issued, rank pari passu in all respects with the existing ordinary shares. Application will be made for the Subscription Shares to be admitted to trading on AIM and admission is expected to take place on or around 8 February 2015. 

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.

Enquiries

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/Charles Goodwin/Aidan Stanley	Yellow Jersey PR Limited	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 includes 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 also holds 2 million 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. At present those shares are valued at US$4 million based on the latest price at which Circum has accepted subscriptions at the last reporting date.

ENDS

 

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