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, aiming to raise gross proceeds of up to £2.3 million. This move comes alongside a separate placing of shares intended to generate an additional £1.2 million, with the combined fundraising efforts targeting a minimum of £3.5 million.
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 set to close at 6:00 p.m. on January 20, 2025, unless it is oversubscribed and closes early. The results of the retail offer will be announced the following morning, with the new shares expected to commence trading on the AIM market of the London Stock Exchange (LON:) at 8:00 a.m. on January 23, 2025.
The funds raised from this initiative are earmarked for the final commissioning and optimization of the Primary Flotation Plant and the purchase of a Secondary Flotation Plant at the Zulu Lithium and Tantalum Project. The company also plans to allocate funds for deferred VAT and other statutory requirements in Zimbabwe, arrears of salaries and wages to employees, and payments to specific suppliers and contractors.
Negotiations are underway with certain creditors of the company to accept new shares in full or partial settlement of liabilities. Details of such creditor settlements will be disclosed at the time of the retail offer announcement.
Shore Capital Stockbrokers Ltd is coordinating the retail offer, which is open to eligible investors in the United Kingdom (TADAWUL:). Participating intermediaries must be registered on the BookBuild platform and agree to the offer’s terms and conditions.
This fundraising strategy is part of the company’s efforts to recommence operations at the Zulu project and address immediate creditor settlements to support an initial test run of the flotation plant. The retail offer and the placement are interdependent, and if the combined proceeds fall materially short of the £3.5 million target, neither will proceed.
The information presented is based on a press release statement from Premier African Minerals Limited.
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