28th Jan 2014 11:28
LONDON (Alliance News) - Premier African Minerals Ltd said Tuesday that it had agreed a finance package to fund the continued development of its RHA Tungsten Project in Zimbabwe.
The finance package includes a GBP3 million Standby Equity Distribution Facility and a GBP500,000 subscription agreement, and a separate equity swap agreement with YA Global Master SPV Ltd.
Under the subscription agreement, YAGM agreed to subscribe for 42.7 million shares at 1.17 pence each.
Under the equity swap agreement the company will pay GBP300,000 to YAGM and in return YAGM will pay 15 monthly settlement payments based on a formula related to the difference between the prevailing market price and a benchmark price.
Premier African also issued 1,079,550 shares at 2 pence each to consultant Brendan Ross, for a total value of around GBP21,591.
"With an expected upgraded resource and mining study for RHA planned for later this quarter, ongoing negotiations intended to secure the funds required to bring RHA into production and finalisation of the off-take agreement, this facility is opportune and appropriate at this time," said Chief Executive Officer George Roach in a statement.
Shares in Premier African were trading up 7.9% at 1.29 pence Tuesday morning.
By Hana Stewart-Smith; [email protected]; @hanassallnews
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