3rd Feb 2015 08:39
LONDON (Alliance News) - Premier African Minerals Ltd on Tuesday said it has signed a GBP1 million convertible loan note financing deal with Darwin Strategic Ltd to finance its RHA Tungsten project in Zimbabwe, but said there remains a USD2 million shortfall still to cover.
Under the financing deal, the convertible note will be divided into 40 individual notes with a par value of GBP25,000 each. Darwin also has been issued warrants to subscribe to 40 million new shares in Premier African at an exercise price of 1.25 pence per share.
George Roach, chief executive officer of Premier African, said the company still needs around USD2 million to meet its budgeted cash flow shortfall to commercial production at RHA Tungsten.
Roach said the company anticipates the majority of the shortfall will be secured as asset finance against the plant and power generation equipment on order and under manufacture for the project.
"Premier mobilises civil construction and road upgrade and commences construction management contracts this week. At this time, the target for commercial production remains June 2015," he added.
Shares in Premier African Minerals were down 14% to 0.95 pence on Tuesday morning, having earlier touched 0.84p, and was one of the worst performers in the AIM All-Share index.
By Sam Unsted; [email protected]; @SamUAtAlliance
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