REG - Premier African Min. - Funding of Zulu Project and Update

Premier African MineralsAnnouncement

11/12/2023 11:30

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RNS Number : 3578W  Premier African Minerals Limited  11 December 2023

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

For immediate release

 

11 December 2023

Premier African Minerals Limited

 

Funding of Zulu Project and Update

 

The Board of Premier African Minerals Limited ("Premier" or the "Company") is
pleased to announce a subscription today to raise £2.4 million before
expenses at an issue price of 0.23 pence per new ordinary share for the Zulu
Lithium and Tantalum Project ("Zulu").

The Company is on track to target revenue generating production by February
2024 following the installation of the 55 tons per hour ball mill and other
associated structures which is expected to be completed by late January/early
February 2024.

In addition, the Company has today conditionally settled payment of US$2.5
million (equivalent to £2 million) in invoices through the issue of
769,230,769 new ordinary shares of the Company to Zulu open pit mining
contractor, JR Goddard Contracting (Pvt) Ltd, issued at a price of 0.26 pence
per new ordinary share.

George Roach, CEO, commented, "The subscription and the contractor settlement
should see Zulu through to production in February 2024.

 

We are deeply encouraged that the subscription was taken up by two
institutional investors with one of the investors having supported the Company
previously. We believe that the attraction of further institutional investment
into Premier demonstrates the underlying value of Premier.

 

We would be remiss if we did not also express our appreciation to our Mining
Contractor for their willingness to accept settlement of invoices in Premier
shares".

 

Subscription

Premier has today issued by way of a direct subscription ("Subscription"),
conditional on admission, 1,043,478,261 new ordinary shares of nil par value
("Subscription Shares") at a Subscription price of 0.23 pence per Subscription
Share. The Subscription Shares will, when issued, rank pari passu in all
respects with the existing ordinary shares. The direct subscription was
arranged by Fox-Davies Capital Limited with just two participating
institutions.

 

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 15 December 2023.

 

The Subscription has been arranged within the Company's existing share
authorities. Premier intends to use the proceeds of the Subscription
principally to assist with the ongoing mining operations at Zulu including the
necessary works for installation of the 55 tons per hour ball mill with its
associated structures and general working capital.

 

Contractor Settlement

As previously announced on 25 August 2023, Zulu open pit mining contractor, JR
Goddard Contracting (Pvt) Ltd ("JRG") had agreed to accept payment of a
limited number of future invoices until the end of December 2023, now extended
to when commercial shipments begin at Zulu in Q1 of 2024, in new ordinary
shares of the Company at the closing middle market price on the day prior to
settlement.  Accordingly, the Company has today conditionally settled payment
of US$2.5 million (equivalent to £2 million) in invoices through the issue of
769,230,769 new ordinary shares of the Company at the price of 0.26 pence
("Settlement Shares").

The issue of the Settlement Shares is conditional on the written confirmation
that JRG has received Exchange Control Approval from the Reserve Bank of
Zimbabwe for receipt of the Settlement Shares ("Condition Precedent").
Application will be made for the Settlement Shares to be admitted to trading
on AIM in due course.

 

Any sales of the Settlement Shares will be handled by Premier's brokers under
orderly market conditions with an initial 20-day lockup of the Settlement
Shares following the date that the Conditional Precedent is satisfied.

 

Total Voting Rights

Following the issue of the Subscription Shares, the Company's issued share
capital consists of 26,916,580,705 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.

 

Market Abuse Regulations

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 ("UK MAR").

 

The person who arranged the release of this announcement on behalf of the
Company was George Roach.

A copy of this announcement is available at the Company's website,
www.premierafricanminerals.com (http://www.premierafricanminerals.com)

Enquiries:

 George Roach                      Premier African Minerals Limited    Tel: +27 (0) 100 201 281
 Michael Cornish / Roland Cornish  Beaumont Cornish Limited            Tel: +44 (0) 20 7628 3396

                                   (Nominated Adviser)
 Douglas Crippen                   CMC Markets UK Plc                  Tel: +44 (0) 20 3003 8632
 Toby Gibbs/Rachel Goldstein       Shore Capital Stockbrokers Limited  Tel: +44 (0) 20 7408 4090
 Jerry Keen                        Fox-Davies Capital Limited          Tel: +44 (0) 20 3884 7447

 

Important Notice

Beaumont Cornish Limited ("Beaumont Cornish"), which is authorised and
regulated in the United Kingdom by the Financial Conduct Authority, is acting
as nominated adviser to the Company in connection with the Subscription and
will not regard any other person as its client and will not be responsible to
anyone else for providing the protections afforded to the clients of Beaumont
Cornish or for providing advice in relation to such proposals. Beaumont
Cornish has not authorised the contents of, or any part of, this announcement
and no liability whatsoever is accepted by Beaumont Cornish for the accuracy
of any information or opinions contained in this announcement or for the
omission of any information. Beaumont Cornish as nominated adviser to the
Company owes certain responsibilities to the London Stock Exchange which are
not owed to the Company, the Directors, shareholders or any other person.

Fox-Davies Capital Limited is authorised and regulated by the FCA in the
United Kingdom and is acting exclusively for the Company and no one else in
connection with the Subscription and will not be responsible to anyone
(including any Subscriber) other than the Company for providing the
protections afforded to its clients or for providing advice in relation to the
Subscription or any other matters referred to in this announcement.

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.

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 and lithium and gold in
Mozambique, encompassing brownfield projects with near-term production
potential to grass-roots exploration. The Company has accepted a share offer
by Vortex Limited ("Vortex") for the exchange of Premier's entire 4.8%
interest in Circum Minerals Limited ("Circum"), the owners of the Danakil
Potash Project in Ethiopia, for a 13.1% interest in the enlarged share capital
of Vortex. Vortex has an interest of 36.7% in Circum.

 

Ends

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