LONDON – Premier African Minerals Limited (AIM:PREM) has launched a retail offer of up to 8.263 million new ordinary shares at an issue price of 0.0275 pence per share, aiming to raise gross proceeds of up to £2.3 million. This move accompanies a separate placement of shares intended to generate an additional £1.2 million, with joint fundraising efforts targeting a minimum of £3.5 million.

The issue price represents a 30% discount to the mid-market closing price on January 15, 2025. The retail offer began at 7:05 a.m. on January 17, 2025, and is scheduled to close at 6:00 a.m.: 00 pm on January 20, 2025, unless oversubscribed and closes early. The results of the retail offer will be announced the following morning, with the new shares expected to start trading on the AIM market on London Stock Exchange (LON:) at 8:00 am on January 23, 2025.

The funds raised from this initiative are earmarked for the final commissioning and optimization of the Primary Flotation Plant and the purchase of a Secondary Flotation Plant at the Zulu Lithium and Tantalum Project. The company also plans to set aside funds for deferred VAT and other statutory requirements in Zimbabwe, arrears of salaries and wages to employees, and payments to certain suppliers and contractors.

Negotiations are ongoing with some of the company’s creditors to accept new shares in full or partial settlement of debts. The details of such creditor settlements will be disclosed at the time of announcing the retail offer.

Shore Capital Stockbrokers Ltd is coordinating the retail offering, which is open to qualified investors in the United KINGDOM (TADAUL:). Participating intermediaries must be registered on the BookBuild platform and agree to the terms and conditions of the offer.

This fundraising strategy is part of the company’s efforts to restart operations at the Zulu project and resolve immediate creditor settlements to support an initial test run of the flotation plant. The retail offer and the placement are dependent on each other, and if the combined income falls materially short of the £3.5 million target, neither will proceed.

The information presented is based on a press release statement from Premier African Minerals Limited.

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