08:00 Thu 09 Apr 2020
Premier African Min - Loan Funding and Corporate update
For immediate release
9 April 2020
Loan Funding and Corporate update
New Loan
The Company has entered into a secured
The annual interest rate payable on the outstanding amounts under the New Loan is 10% per annum. The principal amount of
The principal amount (plus any accrued interest) under the New Loan is repayable six months from the date of the Loan Agreement. The Lender, at its sole discretion, may convert any percentage of the principal amount under the Loan Agreement within applicable share authorities into new ordinary shares of the Company at the conversion price of either 90 per cent. of the daily volume weighted average price ("VWAP") during the 5 trading days immediately prior to the conversion notice or 135% of the average daily VWAP for the 20 trading days immediately prior to the execution of the Loan Agreement, subject to the maximum number of shares (at prevailing exchange rates) that could be issued to the Lender on conversion of the entire Loan Agreement being 505,715,625 new Premier ordinary shares (which would represent approximately 4.4 per cent. of the current issued share capital of the Company).
If the Company undertakes any subsequent financing prior to the maturity date of the New Loan, at the Lender's option, part or all of the New Loan may be repaid from the proceeds of the new financing or converted at the same price as the new financing.
The New Loan is subject to normal events of default and the Company has provided a number of standard warranties and undertakings. The New Loan is secured over 200,000 shares of
RHA
Following the Company's update announcement on
The Company has since sent NIEEF a notice of demand to either remedy the ongoing breach under the revised Management Agreement (as announced on
Zulu
As previously reported, the Company is still waiting for confirmation from the Zimbabwean Mining Affairs Board in respect of the exclusive prospecting order application ("EPO") made by the Company's wholly owned Zulu. The Company will provide an update as and when the Company receives written communication pertaining to the remaining procedural process for the award of Zulu's EPO application.
Extension of the
The Company have reached a verbal agreement with
Commenting on this announcement,
The situation at RHA is deeply frustrating. We have a plant standing, a number of staff who have been retrenched and all because NIEEF perpetuates a state of noncompliance with the revised Management Agreement and will not agree any of the alternatives we have proposed. It gives me no pleasure whatsoever that we have now had to serve a demand, but the delays are not in Premier's interests and cannot conceivably be in the interests of
My thanks to the principals of Regent for their continued support and understanding at this time.
I anticipate further updates in the near term."
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
Enquiries:
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Tel: +44 (0) 20 7628 3396 |
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Notes to Editors:
The Company has a diverse portfolio of projects, which include tungsten, rare earth elements, lithium and tantalum in
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.
ENDS
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