Zimbabwe – Premier African Minerals, the AIM-listed multi-commodity mining and resource development company focused on Southern and Western Africa, has produced first concentrates at its flagship RHA tungsten project in Zimbabwe, while also fine tuning and further optimising operations.
The coarse grade concentrates produced on Monday represent approximately 75% of anticipated production from RHA, with the production of fines concentrate expected to follow in the next few days.
Third tranche of Darwin loan approved
Meanwhile, Darwin Strategic Limited on Monday also agreed to the release of the final third tranche of financing of £450 000 to Premier.
Exercise of warrants
Darwin will also convert the remaining £600 000 zero coupon senior unsecured convertible loan notes into equity. The conversion of the loan notes is at the maximum price possible under the agreement, at 1.35p per new ordinary share. The company has therefore issued 44.4 million new ordinary shares to Darwin.
The company explains that while this conversion settles the remaining loan notes outstanding under the first financing entered into with Darwin in February 2015, the April Loan Notes, amounting to £1,650,000 in total, are repayable from 1 October 2015 at the rate of seven notes in cash per month. Should Premier fail to repay these, these may be converted to Premier shares at 90% of the then ruling market price.
Meanwhile, YA Global Masters SPV,the holders of 9 million warrants, has issued a notice of exercise in respect of the warrants and tendered payment of £112 500. The warrants have an exercise price of 1.25p. Premier has therefore issued today 9 million new ordinary shares to YAGM.
Following the issue of the YAGM and Darwin shares, the company’s issued share capital consists of 611.371 million ordinary shares, with voting rights.
“I am delighted to be able to report the production of the first wolframite concentrates from the RHA mine.
“Following achievement of this milestone on time, fine tuning and optimisation is ongoing and we look forward to achieving our next milestone of first shipments in the near future,” Premier African Minerals CEO George Roach commented.
He further commented: “At the same time, the exercise of warrants is a welcome expression of confidence in Premier, and this, together with the release of the final tranche of funding from Darwin, is most satisfying.
“The conversion of the remaining portion of the loan notes held by Darwin from the first financing concluded in February 2015, now means that there are no outstanding February loan notes and no debt repayments required in respect of the Darwin loan notes issued in April 2015 until October 2015, ” said Roach.