LONDON – Premier African Minerals Limited (AIM:PREM) has launched a retail offering 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 by up to £2.3 million. The move comes alongside a separate share placement aiming to generate an additional £1.2m, with joint fundraising efforts targeting a minimum of £3.5m.
The issue price represents a 30% discount to the average market closing price as of January 15, 2025. The retail offering began at 7:05 AM on January 17, 2025, and is scheduled to close at 6:00 PM on January 20. , 2025, unless oversubscribed and closed early. The results of the retail offering will be announced the following morning, and the new shares are expected to begin trading on the company's AIM market. London Stock Exchange (LON:) 8:00 AM on January 23, 2025.
The funds raised from this initiative were allocated for the final commissioning and improvement of the primary flotation plant and the purchase of the secondary flotation plant at the Zulu Lithium and Tantalum Project. The company also plans to allocate funds for deferred value-added tax and other legal requirements in Zimbabwe, arrears of salaries and wages to employees, and payments to selected suppliers and contractors.
Negotiations are underway with some of the company's creditors to accept new shares to settle its obligations in whole or in part. Details of these creditor settlements will be disclosed at the time of the announcement of the retail offer.
Shore Capital Stockbrokers Ltd is coordinating the retail offering, which is open to qualified investors in the United States Kingdom (Trading:). Participating brokers must register on the BookBuild platform and agree to the terms and conditions of the offer.
This fundraising strategy is part of the company's efforts to resume operations at the Zulu Project and process immediate settlements to creditors to support the initial trial run of the flotation plant. The retail offer and underwriting are interlinked and if the combined proceeds are materially lower than the target of £3.5 million, it will not proceed.
The information provided is based on a press release issued by Premier African Minerals Limited.
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