LONDON – Premier African Minerals Limited (AIM: PREM) has launched a sale of up to 8.263 million new ordinary shares at an issue price of 0.0275 pence per share, with the aim of raising gross profit to £2.3 million. The initiative comes with a separate placement of shares aimed at generating an additional £1.2 million, and a joint fundraising effort aimed at a minimum of £3.5 million.
The issue price represents a 30% discount to the average closing price as of January 15, 2025. The auction began at 7:05 am on January 17, 2025, and is scheduled to close at 6:00 pm on January 20. , 2025, unless oversubscribed and closed immediately. The results of the sale will be announced the following morning, with the new shares expected to start trading on the AIM market. London Stock Exchange (LON:) at 8:00 am on January 23, 2025.
Funding collected from this project is earmarked for the final commissioning and full use of the Print Flotation Plant and the purchase of the Secondary Flotation Plant at the Zulu Lithium and Tantalum Project. The company also plans to allocate money for deferred VAT and other legal requirements in Zimbabwe, arrears of salaries and wages to employees, and payments to certain suppliers and contractors.
Negotiations are underway with some of the company's creditors to accept new shares in full or partial payment of debts. Creditor settlement details will be announced at the time of the auction.
Shore Capital Stockbrokers Ltd is organizing the sale, which is open to qualified investors in the United States. The Kingdom (TADAWUL:). Participating agents must be registered on the BookBuild platform and agree to the terms and conditions of the offer.
This fundraising strategy is part of the company's efforts to restart operations on the Zulu project and to deal with immediate creditor settlements to support the first trial of the flotation plant. The sales offer and the placement are dependent on each other, and if the combined income falls short of the £3.5 million target, it will not proceed.
The information provided is based on a press release from Premier African Minerals Limited.
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