Premier to settle £2 million loan facility in kind

PREMIER African Minerals has said the unsecured £1,7 million loan facility advanced by its chief executive officer Mr George Roach last year, which was later extended to £2 million and remains due will not be settled in either cash or shares.

This comes as the mining house with lithium interests in Fort Rixon is due to hold a General Meeting on July 29 in London.“Premier African Minerals Limited announces that settlement of the Loan Facility Agreement provided by George Roach which remains due will not be settled in either cash or shares from any of the two resolutions being proposed at the General Meeting on July 29, 2024,” the firm said in a brief update on Tuesday.

Last year on July 20, 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.

“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 a 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. If Premier is unable, for any reason, to issue the settlement shares by whatever means, repayment of the loan may be made in cash, plus compounded accrued interest at eight percent a year from the date of the use request.

On the upcoming General Meeting, one of the resolutions, which will be proposed as a special resolution reads: “To approve for the period commencing 24 months following the date of this GM (Period), the disapplication of the pre-emption provisions set out in Regulation 1,5 of the company’s articles of association in relation to the issue of, or the grant of any right to subscribe for or convert any security into, up to a further two billion ordinary shares, and to authorise the directors of the company to issue, or grant any right to subscribe for or convert any security into, shares in accordance with the provisions of this resolution, but so that the company may make offers and enter into, agreements during the period, which would or might, require shares to be allotted or rights to subscribe for, or convert other securities into shares to be granted after the period.”-chrocile