JOHANNESBURG (miningweekly.com) – Multicommodity explorer Premier African Minerals has accelerated the completion of the equity swop agreement with institutional investor YA Global Master (YAGM), which has sold its entire holding of ordinary shares in the company.
In January, Premier entered into a £500 000 subscription agreement and, separately, a £300 000 equity swop agreement with YAGM, under which YAGM agreed to make 15 monthly settlement payments of £20 000 to the company.
Both the company and YAGM had the right at any time to accelerate the payments due under the equity swop agreement.
As a result of investor demand, Premier had exercised this right and YAGM had sold its entire holding in the company.
YAGM would now make a single final payment of £144 628, after which the agreement would then terminate. The funds would be used by Premier to provide additional working capital and for the continuing development of its Tungsten project, in Zimbabwe.
"We are pleased that investor demand has allowed us to close the swop agreement seven months early. We appreciate the cooperative manner in which YAGM and Premier have dealt with this.
“The company is in a strong financial position, with current available funds and a further $2-million coming from the Circum transaction, with no need in the foreseeable future to call upon the Small Enterprise Development Agency facility entered into on January 27,” commented Premier CEO George Roach.
The issued ordinary share capital of Premier would remain unchanged at 5.1-million ordinary shares.