Zimbabwe-focussed Premier African Minerals shares jump with £1.7 million loan facility

By Agencies

Premier African Minerals Ltd said on Friday that it had entered into an unsecured loan facility agreement with George Roach, its acting chair and chief executive officer.

Shares in the Zimbabwe-focused tungsten producer jumped 9.0% to 0.48 pence in London on Friday.

Premier African said the loan was worth G£1.6 million and could be drawn down in two separate requests, with the first being £1.0 million, and the second being the remaining balance.

The loan is repayable in new shares, and if Premier African is unable to issue settlement shares, repayment of the loan can be made in cash in an amount equal to the loan plus compounded accrued interest at 8.0% per annum from the date of the utilisation request.

Premier African said that it will use the loan for general working capital purposes, such as the funding of ongoing operational expenses at Zulu lithium and tantalum project.

The Zulu lithium and tantalum project is located in Zimbabwe, and is considered to be potentially the largest undeveloped lithium bearing pegmatite in the country, covering 14 mineral claims and a surface area of 3.5 kilometres.