Fresh cash injection for Premier African Minerals

Premier African Minerals received a fresh cash injection on Tuesday, announcing it had received a direct subscription for £500,000 in new ordinary shares.

The AIM-traded company said the subscription consisted of an issue of 100 million new ordinary shares, at a subscription price of 0.5p each, conditional on admission.

"The capital will support existing project development requirements and general working capital in the period leading up to achieving positive operational cash flow from the RHA Project [in Zimbabwe], that is expected this spring, and we do not currently anticipate any further need to approach the market for finance to support general working capital in this period," said chairman and CEO George Roach.

"In addition, the ongoing market conditions in the natural resources sector will, in our view, continue to present potential attractive opportunities for the company to further expand its portfolio of assets, and the proceeds of the subscription will also provide additional capital to consider any such opportunities as and when they arise," he added.

The subscription shares, when issued, would rank pari passu with the company's existing ordinary shares. Admission was expected to take place on or around 7 March.