Business
Cancellation of Warrants, Placing and Update
Cancellation of Warrants, Placing and Update.
About this update from Premier African Minerals Ltd.
[{"type":"text","content":"\n \nRNS Number : 9584H Premier African Minerals Limited 16 March 2018 \n\nPremier African Minerals Limited / Ticker: PREM / Index: AIM / Sector: Mining\nFor immediate release\n \n16 March 2018\n \nPremier African Minerals Limited\nCancellation of Darwin Warrants, Placing and Corporate Update \n \nThe Board of Premier African Minerals Limited (\"Premier\" or the \"Company\") is pleased to announce a placing today to raise £400,000 before expenses at an issue price of 0.16 pence per new ordinary share, the net proceeds of which will be used to cancel all the existing warrants held by Darwin Capital Limited (\"Darwin\") and for general working capital purposes. \n \nCancellation of Darwin Warrants \nThe Company has agreed with Darwin that the entire holding of 205,354,165 warrants held by Darwin will be cancelled for a cash payment by Premier of £145,000. The Board believes that the continuing existence of the warrants, which have downwards adjustable exercise prices, and which required Darwin's advance permissions for certain share issuance, created an overhang and that the cancellation is in shareholder's best interests. The payment for the warrant cancellation reflected the Board's assessment of the fair value of the Darwin warrants based on a Black Scholes valuation. \n \nPlacing\nPremier has today issued by way of a placing (\"Placing\"), conditional on admission 250,000,000 new ordinary shares of 0.1 pence each (\"Placing Shares\") at a subscription price of 0.16 pence per Placing Share. The Placing Shares will, when issued, rank pari passu in all respects with the existing ordinary shares. Application will be made for the Placing Shares to be admitted to trading on AIM and admission is expected to take place on or around 22 March 2018. The Placing has been undertaken within the Company's existing share authorities.\n \nCorporate update on RHA Tungsten Mine (\"RHA\")\nAs announced on 16 January 2018, the Board had commenced discussions with the National Indigenisation and Economic Development Fund (\"NIEEF\") which has an interest of 51% in RHA in respect of agreeing a mechanism to restructure its ownership of RHA. These discussions continue and a further announcement will be made in due course.\n \nTotal Voting Rights\nFollowing the issue of the Placing Shares, the Company's iss...