Premier African Minerals Ltd (LON:PREM) revealed it is debt-free and “well-funded for the immediate future” as it has settled all outstanding amounts owing to directors, employees and other creditors.
A day after raising £1.1mln through a placing, the company said it has issued £600,057 worth of new shares to repay accrued but unpaid contractual amounts and outstanding loans.
In a statement, chief executive George Roach said: “Following our earlier announcement yesterday, I am very pleased to confirm that Premier is now debt-free and well-funded for the immediate future.
“Together with the cost reductions achieved over the past few years, we are also a much more efficient company with reduced overheads and able to focus on the future from a position of improved financial strength.”
He said Premier African is assessing exploration opportunities in more than one African jurisdiction and that initial exploration on its tenement in Mozambique is now able to proceed, while other new tenement applications in Mozambique are underway.
The company is also looking to continue developing its relationship with MN Holdings Limited, the operators of Otjozondu Manganese mine in Namibia, where Premier African owns a 19% stake.
The ongoing development of Premier African’s relationship with MNH will now be subject to independent audit and valuation of their mining operation, Roach added.
“In regard to our Zimbabwe based operations, Premier will now complete a review of RHA Tungsten as requested by our off-take partner as a pre-cursor to the off-taker undertaking to finance this mine back into production. Simultaneous with this, Premier has determined that it should also look to secure its future without the country risk associated with RHA Tungsten and Zulu Lithium and to separate these operations,” he said.
Following the recent funding and in view of potential deals for further exploration assets, the Premier board said it is considering a share consolidation at a time in the future, which is likely to be carried out in conjunction with a potential future transaction.