Aim-listed Premier African Minerals on Friday announced it had entered into a $350 000 loan and subscription agreement with Regent Mercantile Holdings.
Should Premier fail to repay the loan in two equal payments on August 1 and September 1, Regent may convert any percentage of repayment into new Premier shares at a conversion price equal to 90% of the daily volume weighted average price.
The loan agreement is secured over 350 000 shares of Circum Minerals. Premier holds about five-million shares in Circum, which owns the Danakil potash project, in Ethiopia.
Premier will use the funds to advance its RHA tungsten and its Zulu lithium projects, in Zimbabwe.