Premier African Minerals raises £0.4m as it continues Honey Badger due diligence

Premier African Minerals announced a placing to raise £0.4m before expenses at an issue price of 0.09p per new ordinary share on Wednesday.

The AIM-traded firm also announced the appointment of SVS Securities as its joint broker, to work alongside its existing corporate broker, Shore Capital Stockbrokers, with immediate effect.

It confirmed application was being made for the placing shares to be admitted to trading on AIM, with admission expected to take place on or around 7 March.

Premier said it intended to use the proceeds of the placing to assist with the funding of the ongoing due diligence on the Honey Badger Resources acquisition, deal costs for the Honey Badger Resources and KME Plant transaction, and general working capital necessary for the group.

“We have held off taking any placement to cover deal costs and some immediate working capital requirements until now,” said chief executive officer George Roach.

“With renewed progress at RHA Tungsten, due diligence commencing on HBR and first benefits of the anticipated KME Plant Hire deal coming through with our ‘back -to-work’ announcement yesterday in regard to the Zulu Lithium Project, I look forward to a period of refocus on value and the potential benefits of the anticipated acquisitions.”

Roach said Honey Badger Resources in particular, with a compliant inferred mineral resource greater than 500,000 ounces, partial development including existing surface plant, upside resource potential and anticipated production toward the end of 2019, represented “complementary potential early production” in support of RHA.

“I do remind shareholders that we have reached general agreement on issues affecting the financing and return to production at RHA Tungsten with the Ministry of Industry, Commerce and Enterprise Development and we will announce further details as soon as the agreements are signed.”