Chronicle Editor
Nqobile Bhebhe, [email protected]
Premier African Minerals chief executive officer Mr George Roach and the board have agreed that his £2 million loan facility repayment will not be in cash from any proceeds.
The loan is now due for settlement.
Last year, the entity initially entered into an unsecured £1,7 million loan facility with Mr Roach which was later extended to £2 million.
The loan was for general working capital purposes including funding ongoing operational expenses at its Zulu lithium and tantalum project, in Fort Rixon, Zimbabwe.
In a brief update, the Aim listed entity said: “The Board of Premier African Minerals Limited announces that settlement of the Loan Facility Agreement provided by George Roach is due.
“George Roach has agreed with the Board of Premier that settlement will not be made in cash from any proceeds of funds now raised and will be dealt with by the Board of Premier in due course,”
The lithium firm is confident that it will start commercial production in late February with first shipments expected in March.
In July, the United Kingdom-headquartered mining group announced that it had entered into an unsecured loan facility agreement with Mr Roach.
The agreement was entered into on the day the lithium firm said it was “exploring potential options to secure interim short-term funding from certain members of the board.”
“On July 20, 2023, Premier African Minerals Limited announced that the company had entered into a loan facility agreement with George Roach for up to £1,7 million. Premier and the lender have today agreed to vary the facility by increasing the size of the facility from £1,7 million to £2 million and to waive any interest on repayment by Premier of the Facility in cash,” reads part of the statement.
“Premier and the Lender (Mr Roach) have further agreed that Premier will make one request for a draw-down under the Amended Facility in the amount of £2 million,” it added.
The resource group said independent directors (being the board other than Mr Roach) were consulted on the loan.
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