Premier African Minerals (LON:PREM) – SPECULATIVE BUY*: RHA update
Market Cap: £5m; Current Price: 0.38p
Conversion of loan note and Direct Finance update
From today:
Premier African Minerals has received a notice of exercise by Darwin Capital to convert £210,000 loan notes into equity and as a result the company has issued 77,954,475 at 0.269388p. The outstanding balance of Darwin’s loan notes is £915,000.
Following the issue of shares the Company’s totalled issued capital consists of 1,420,293,056 shares.
From yesterday:
Prem has increased its working capital facilities with a US$200,000 general credit facility from a local Zimbabwean bank. The facility may be used for direct operating expenses associated with the production of wolframite concentrates. The facility bears the banks cost of funds plus a margin of 8.75% and is guaranteed by Prem. There facility has an initial term until 31/10/16.
NORTHLAND CAPITAL PARTNERS VIEW: The facility from the Zimbabwean bank is part of Premier African Minerals continuing preparations for the underground mine at the RHA Tungsten Project. Prem continues to expect RHA to be cash flow positive from the spring and is currently advancing the development of the lower levels of the underground mine alongside completing the final modifications of the plant.