BY MTHANDAZO NYONI
PREMIER African Minerals (Premier) says Regent Mercantile has agreed to convert its loan plus accrued interest in the amount of US$390 040,92 to new ordinary shares in accordance with the terms of the loan agreement.
The two parties entered into a loan agreement in June last year and under the terms, Premier was required to make two equal payments on August 1, 2019 and September 1, 2019.
But Premier failed to repay the loan despite several payment extensions, leading Regent to convert the loan to new Premier shares at a conversion price equal to 90% of the daily volume weighted average price during the five trading days immediately prior to the relevant payment
Commenting on the development, Premier chief executive George Roach said: “Regent invested in this loan agreement with the stated intention to convert the loan into Premier shares at a time Regent considered appropriate and in pursuance of their desire to be a long-term supportive shareholder. I am appreciative of this statement of support and their continued association with Premier as a shareholder.”
The company issued 431 241 920 new ordinary shares to Regent at an issue price of 0,07092p.
The Regent shares will rank pari passu (on equal footing) in all respects with the existing ordinary shares.
The issuing of the Regent shares will also see the termination of the security held by Regent — over 350 000 shares of Circum Minerals Limited.
In a related matter, Premier also has announced that D-Beta One EQ Ltd, YA II PN Ltd and Riverfort Global Opportunities PCC Limited have converted US$50 000 of the investment plus accrued interest of US$6 276,71, amounting to US$56 276,71, in accordance with the terms of the investment agreement.
The company has, therefore, issued
70 426 740 new ordinary shares to the companies.
Following the issue of the shares, the company’s issued share capital consists of 12 437 044 414 ordinary shares.
Premier is a multi-commodity mining and natural resource development company focused on southern Africa with its 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 grassroots 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 19% interest in MN Holdings Limited, the operator of the Otjozondu Manganese Mining Project in Namibia.