BY MTHANDAZO NYONI
MINING concern Premier African Minerals Limited and Regent Mercantile Holdings Limited have agreed to further extend the repayment terms of the convertible US$350 000 loan note entered into in June last year.
In a statement, Premier said the parties have now agreed to extend the payment term to March 31, 2020.
“The instrument will remain subject to the agreed normal events of default and the company (Premier) has provided several standard warranties and undertakings to Regent in respect of the group,” reads part of the statement.
“The loan agreement will continue to be secured over 350 000 shares of Circum Minerals Limited held by Premier.”
Under the terms of loan agreement and related subscription agreement subscribed to Regent, Premier was required make to two equal payments on August 1, 2019 and September 1, 2019.
In the event Premier failed to repay the loan, Regent at its sole discretion was allowed to convert any percentage of a payment into new Premier shares at a conversion price equal to 90% of the daily volume weighted average price during the five days trading days immediately prior to the relevant payment date.
The parties had earlier agreed on September 3, 2019 to extend the payment until January 31, 2020.
In considering the repayment extension, Regent were awarded the right to elect a conversion of the principal amount, including all outstanding interest thereon during the period at the conversion price.
Premier is a multi-commodity mining and natural resource development company focused on southern Africa where it runs RHA Tungsten and Zulu Lithium projects in Zimbabwe.
The company has a diverse portfolio of projects, which include tungsten, rare earth elements, lithium and tantalum in Zimbabwe, encompassing brownfield projects with near-term production potential to grass-roots exploration.
It holds 5 010 333 shares in Circum Minerals Limited, the owners of the Danakil Potash Project in Ethiopia, which has the potential to be a world class asset.
In addition, the company holds a 10% interest in MN Holdings Limited, the owner and operator of the Otjozondu Manganese Mining Project in Namibia.