Premier African Minerals Ltd (LON:PREM), the London-quoted mining and exploration company, is pleased to announce a fully underwritten offer to raise £1.5 million (before expenses) by the issue and allotment by the Company of 300,000,000 new ordinary shares each in the Company (“New Ordinary Shares”) at an offer price of 0.5 pence per New Ordinary Share, being a discount of approximately 23 per cent to today’s closing mid-price.
The Company is pleased to provide existing shareholders, private and other investors the opportunity to participate in the fundraising by applying exclusively through the www.PrimaryBid.com platform under the Offer. PrimaryBid does not charge investors any commission for this service.
The Company will use the proceeds of the Offer to;
· advance further drilling at the Zulu Lithium project and completion of the maiden resource statement;
· supplement exploration costs at the limestone exploration at TCT-IF in Mozambique;
· general working capital as may not be met from proceeds from production at RHA Tungsten during the initial optimisation phase.
Highlights
· Offer at 0.5 pence per New Ordinary Share (“Issue Price”) to raise an aggregate of approximately £1.5 million (before expenses).
· The Offer, which is described below, is fully underwritten by a financial institution.
· Net proceeds of the Offer will be applied towards further drilling at the Zulu Lithium project and the completion of the maiden resource statement, exploration costs at the limestone exploration at TCT-IF in Mozambique and general working capital of the Company.
· The Company values its private investor base and is therefore opening the Offer to individual and institutional investors exclusively on PrimaryBid.com from 4.31p.m. on 24 March 2017 to 5p.m. on 26 March 2017. PrimaryBid Limited is acting as sole arranger for the Offer.
· Subscriptions under the Offer will be considered by the Company on a “first come, first served” basis subject to conditions.
· Any investment request over £100,000 will first require the Company’s consent.
No commission is charged to investors on applications to participate in the Offer made through PrimaryBid. It is vital to note that once an application for New Ordinary Shares has been made and accepted via PrimaryBid, an application cannot be withdrawn.
For further information on PrimaryBid.com or the procedure for applications under the Offer, visit www.PrimaryBid.com or call PrimaryBid.com on +44 (0)20 7491 6519.
The fundraising is expected to be completed and the results of it announced on 27 March 2017.
George Roach, Chief Executive Officer of Premier African Minerals Ltd, commented: “PrimaryBid has now completed a number of transactions to allow retail investors access to discounted equity offerings at zero commission rates. We are pleased to be able to use this innovative and easy-to-use platform to give our shareholders as well as interested parties a chance to participate in this discounted fundraising that up to now were only accessed by institutional investors, and, particularly in a placement that is fully underwritten. This placement, together with the return to production at RHA Tungsten assures Premier the ability to fast track additional drilling already commenced at the Zulu Lithium Project and the ongoing development of this and other projects independent of anticipated cash flows from RHA Tungsten. I am personally thankful to the private investors who have supported our story and am excited that I can finally give them the access they deserve.”
