Premier African Minerals raises £3.5m in discounted share offer

AIM-traded multi-commodity mining and resource development company Premier African Minerals saw "strong" demand at the weekend for its newly issued shares from both private and institutional investors.

As announced on Friday, the Southern and West Africa-focused miner sold shares at 0.3p through primarybid.com, raising £3.5m before expenses.

The shares were sold at 20% discount to their closing price on 28 September.

Premier African also announced it would allot a further 655m shares in regard to its swap agreement, resulting in a total of 6.248bn shares outstanding.

Funds raised via the share issues would be used to fully fund the remaining underground development of its RHA Tunsgten mine, repay and cancel the Delta-Beta One EQ equity swap, cancel the YA II PN Lmtd. loan agreement, complete the preliminary economic assessment of its Zulu lithium project and for general working capital, the company had said in a separate announcement on Friday.

George Roach, chief executive officer of Premier added: "Underground development is fully funded and our team at RHA is confident that the minimum required tonnage at grade will be delivered to the plant during the latter part of Q4 to assure profitable operations. No further capital raise is anticipated or expected for RHA."

As of 1439 BST, shares of Premier African Minerals were plummeting 26.67% to 27.5p.