Premier African Minerals gets cash injection through convertible loan note

21st Jun 2019 14:51

(Sharecast News) - Premier African Minerals has issued a convertible loan note for $0.35m with Regent Mercantile Holdings, it announced on Friday.The AIM-traded firm said the annual interest rate payable on the outstanding loan amount was 10% per annum, adding that the principal amount of $0.35m would be made available to the firm in one advance with no deductions.No warrants were issued to Regent, the board confirmed.It said the principal amount, plus any accrued interest, would be repayable in two equal payments on 1 August and 1 September this year.Failing direct repayment of the loan by Premier, Regent at its sole discretion could convert any percentage of a repayment within applicable share authorities into new Premier shares at a conversion price equal to 90% of the daily volume weighted average price during the five days trading days immediately prior to the relevant repayment date.The proceeds of the loan agreement would be used to support the ongoing development and general working capital of Premier African Minerals, the directors explained."Premier is pleased to have received this offer of support in this form from an independent source who first invested and supported Premier at its original listing," said chief executive officer George Roach."I have remarked on the need for our company to plan for alternative support and to look for further diversification of risk and I do expect this to be one of several key developments in the immediate future."