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Premier African Minerals Limited (LSE:PREM) has today announced the issuance of 2,000,000,000 new ordinary shares, conditional on admission, to China Zenith Capital Ltd ("Zenith") as part of a debt settlement arrangement. These shares will be held on trust for Zenith and are intended to address a significant financial liability.
Debt Settlement Details
The newly issued shares, referred to as Settlement Shares, are being provided to settle a liability of £1,383,092.27 (excluding interest) owed by Premier to Zenith. This liability was detailed in Premier's Consolidated Financial Statements for the year ending December 2023 and was further discussed in the Company’s report dated 28 June 2024. The issuance of the Settlement Shares was authorized by Premier shareholders at the General Meeting held on 29 July 2024.
The Settlement Shares will be sold in an orderly market manner over time. The proceeds from these sales will be applied towards settling the debt owed to Zenith. Should the net proceeds from the sale of these shares fall short of covering the total liability, Premier will either issue additional ordinary shares or make a cash payment to cover any remaining balance. Any proceeds from the sale exceeding the Zenith Liability will be retained by Premier.
