LONDON – Premier African Minerals Limited (AIM:PREM) has launched a retail offer 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 proceeds of up to £2.3 million. The move comes alongside a separate share placement aimed at generating an additional £1.2m, with joint fundraising efforts targeting a minimum of £3.5m.
The issue price represents a 30% discount to the closing mid-market price as of January 15, 2025. The retail offer began at 7:05 a.m. on January 17, 2025 and is scheduled to end at 6:00 p.m. on January 20. , 2025, unless oversubscribed and closed earlier. The results of the retail offer will be announced the following morning, and the new shares are expected to start trading on the AIM market London Stock Exchange (LON:) at 8:00 a.m. on January 23, 2025.
The funds collected through this initiative are intended for the final commissioning and optimization of the primary flotation plant and the purchase of the secondary flotation plant in the Zulu Lithium and Tantalum project. The company also plans to set aside funds 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 individual creditors of the company on the acquisition of new shares in full or partial settlement of liabilities. Details of such creditor settlements will be announced at the time the retail offer is announced.
Shore Capital Stockbrokers Ltd is coordinating the retail offering which is open to qualified investors in the United States Kingdom (TADAVUL:). Participating brokers 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 effort to restart work on the Zulu project and resolve immediate creditor settlements to support the initial flotation test operation. The retail offer and placement are interdependent, and if combined revenues fall materially short of the £3.5m target, neither will proceed.
The information presented is based on the press release of Premier African Minerals Limited.
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