Chronicle Editor
Acting Business Editor
Premier African Minerals has entered into an unsecured £1.7 million loan facility agreement with its chief executive officer, Mr George Roach, the mining entity said on Friday.
The agreement was entered into on Thursday the day the lithium firm said it was “exploring potential options to secure interim short-term funding from certain members of the board.”
The loan will be used for general working capital purposes including funding ongoing operational expenses at Zulu Lithium and Tantalum Project in Fort Rixon.
“The company has entered into an unsecured £1.7 million Loan Facility Agreement with George Roach on 20 July 2023. Premier can request a drawdown of the Loan in two separate requests with the first being for £1 million and the second request being the remaining balance of the Loan (collectively the “Utilisation Request”).
” Each Utilisation Request will be repayable on the date falling 6 calendar months after the Utilisation Request (“Repayment Date”),” reads part of the loan announcement.
It further indicated that upon receipt of a Utilisation Request, the “Lender will sell such a number of their holding of Premier ordinary shares (“Shares”) under orderly market conditions until such time as the amount of the Utilisation Request has been realised.
“The Lender will inform the Company of the average selling price of Sale Shares sold by the Lender to fund the Utilisation Request, including all related broker fees incurred during the selling of the Sale Shares (“Floor Price”).”
The firm noted that the loan is repayable in new shares.
“Premier shall repay each Utilisation Request under the Loan in full on the Repayment Date applicable to such Utilisation Request by issuing to the Lender such number of new Shares (“Settlement Shares”) as is equal to the amount of the Loan due on the Repayment Date divided by the Floor Price applicable to the Sale Shares which were sold by the Lender to fund the Utilisation Request.
If Premier is unable for any reason to issue the Settlement Shares by whatever means, repayment of the Loan may be made in cash in an amount that is equal to the amount of the Loan plus compounded accrued interest at eight percent per annum from the date of the Utilisation Request.
No arrangement or other fees are payable under the Loan, it said.
Online Reporter