Premier in debt-equity deal with director

HARARE - Premier African Minerals says it has converted a $300 000 loan availed by chief executive George Roach into equity.

Last week, the company’s board agreed to amend terms of the existing loan agreement by granting conversion rights with respect to the entire loan amount in return for cancellation of the loan’s security over the company’s shareholding of 6,1 million shares in ARC Minerals Limited.

“The company agreed that the loan can be converted into new ordinary shares at any time on or before the maturity date (November 30, 2018) at the lesser of the volume weight average price for the five trading days immediately prior to the date of conversion or the closing price of the Premier’s shares on the day preceding the announcement,” the miner said in an update.

Premier has already received a conversion notice from the lenders to convert the entire principal amount.

“The company has therefore issued 142,045,455 new ordinary shares at an issue price of 0,16p per conversion share. The conversion shares will, when issued, rank pari passu in all respects with the existing ordinary shares,” the company said.

Application was set to be made for the conversion shares to be admitted to trading on AIM and admission was expected to take place earlier this week.

On issue of the conversion shares, Roach — the company’s outgoing chairperson — will be interested directly and indirectly in aggregate in 618,7 million ordinary shares representing 8,4 percent of the enlarged issued share capital of the company.

Premier, whose future is hanging by a thread as auditors have raised red flags over the miner’s ability to continue as a going concern, entered a non-interest bearing 60 day maturity loan on June 4, 2018 with Roach in a move aimed at providing additional working capital.

Roach is on record saying the miner — having pinned its hopes on a debt/equity financing strategy after recording an operating loss from continuing operations $8,2 million in 2017 — was hoping to get additional financing for its RHA Tungstein Mine, failure of which will jeopardise operations.

Post a comment

Readers are kindly requested to refrain from using abusive, vulgar, racist, tribalistic, sexist, discriminatory and hurtful language when posting their comments on the Daily News website.
Those who transgress this civilised etiquette will be barred from contributing to our online discussions.
- Editor

Your email address will not be shared.