27th Apr 2015 10:23
LONDON (Alliance News) - Premier African Minerals Ltd Monday said it has secured a new USD250,000 unsecured loan facility from AgriMinco Corp to provide additional funding for the construction of the RHA tungsten project in Zimbabwe.
Premier African Minerals said the loan will be repayable in 24 months at an interest rate of 5% per year, adding it has agreed not to request repayment from AgriMinco for historic work owed to Premier African, which totalled CAD218,818, until it has repaid the USD250,000 loan facility.
AgriMinco has the option to convert all or part of the loan facility it has provided to Premier African into new shares and warrants. Premier African said the conversion price will be based over a 15-day volume weighted average price and said each new warrant would entitle AgriMinco to subscribe for one new share at an exercise price equivalent to a 20% premium to the conversion price.
Premier African Mineral shares rose by 17% to 2.60 pence per share on Monday morning.
By Joshua Warner; [email protected]; @JoshAlliance
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