Premier African Minerals To Raise GBP400,000 To Cancel Darwin Warrants (ALLISS)

16th Mar 2018 11:43

LONDON (Alliance News) - Premier African Minerals Ltd said Friday that it intends to raise GBP400,000 through a placing of 250.0 million shares at 0.16 pence per share.

Shares in the Africa-focused miner were down 7.9% at 0.193 pence on Friday.

Proceeds will go towards cancelling all 205.4 million warrants held by Darwin Capital Ltd, which will cost Premier GBP145,000.

In addition, Premier has started discussions with the National Indigenisation and Economic Development Fund, which currently has a 51% interest in the RHA Tungsten Mine to create an agreement to restructure its ownership of the mine.

"The existence of the warrants constituted a capital overhang and a potential difficulty in concluding negotiations currently underway. Worth noting that no additional shares have been issued to Darwin in closing out their warrant position," said Chief Executive Officer George Roach.

"Premier will bring the discussions with NIEEF to finality in the very near future. Premier proposed and the board of NIEEF are in principle supportive to the conversion of Premier's loan account into equity in RHA, Premier would as a result of this conversion own 90% of RHA. We are assured that the current procedural delays will not persist," Roach added.

Premier African Minerals is expected to have 6.82 billion shares in issue overall.

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