REG - Premier African Min. - Funding of Zulu Project

Premier African MineralsAnnouncement

25/08/2023 07:00

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RNS Number : 4050K  Premier African Minerals Limited  25 August 2023

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

For immediate release

 

25 August 2023

Premier African Minerals Limited

 

Funding of Zulu Project

 

The Board of Premier African Minerals Limited ("Premier" or the "Company") is
pleased to announce a placing and subscription today to raise £4,000,000
before expenses at an issue price of 0.35 pence per new ordinary share for the
ongoing Zulu Lithium and Tantalum Project ("Zulu") Pilot Optimisation where
the Company is targeting revenue generating production by November 2023.

George Roach, CEO commented: "Based on current projections this funding and
the arrangements set out below is expected to see Zulu pass through the
current interim remedial situation and allow the Company to reach target
nameplate production at Zulu.

 

I am appreciative of the support from our investors and from our Contractors
who effectively are making their own statement of confidence going forward
with this investment."

Contractor Settlement

The two biggest costs associated with Zulu ongoing development are in respect
of the open pit mining contractor, JR Goddard Contracting (Pvt) Ltd and the
Zulu design, procurement, installation, and commissioning contractor, Stark
International Projects Limited (collectively the "Contractors"), who have now
both agreed to collectively accept payment of a limited number of future
invoices until the end of December 2023 ("Term") in new ordinary shares of the
Company at the closing middle market price on the day prior to settlement
("Settlement Shares").

 

Placing

Premier has today issued by way of a placing and direct subscription
("Placing"), conditional on admission, 1,142,857,143 new ordinary shares of
nil par value ("Placing Shares") at a Placing price of 0.35 pence per Placing
Share. The Placing Shares will, when issued, rank pari passu in all respects
with the existing ordinary shares. The placing was undertaken by CMC Markets
UK Plc ("CMC Markets") acting as the Company's sole placing agent in respect
of the Placing, and the direct institutional subscription was arranged by
Fox-Davies Capital Limited.

 

For further details about CMC Markets UK Plc including their CMC CapX platform
please visit https://www.cmcmarkets.com/capx (https://www.cmcmarkets.com/capx)
.

 

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 31 August 2023.

 

The Placing has been arranged within the Company's existing share authorities.
Premier intends to use the proceeds of the placing principally to assist with
the ongoing optimisation of the plant at Zulu and general working capital. In
particular, Premier anticipates using the proceeds to meet the costs
associated with the interim mill installation and associated thickener that is
expected to collectively increase production to approximately 50% of design
capacity from October 2023, ongoing pit development to clear the weathered
zone, and general operational costs to cover the current interim period until
the end November when first revenues are anticipated at Zulu.

 

Total Voting Rights

Following the issue of the Placing Shares, the Company's issued share capital
consists of 23,978,906,266 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 ("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 Placing and
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 document and no liability whatsoever is accepted by Beaumont Cornish
for the accuracy of any information or opinions contained in this document 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.

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.

 

In addition, the Company holds a 19% interest in MN Holdings Limited, the
operator of the Otjozondu Manganese Mining Project in Namibia.

 

Ends

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