Mining Group Premier African Minerals (AIM:PREM) has agreed to settle creditor invoices totalling approximately £163,000 and accrued salaries and former consultant and director payments of £54,000 by issuing a combined 1.18bn new shares at an issue price of 0.0185p per share.
The settlement forms part of the company's ongoing creditor management strategy and is intended to preserve working capital while enabling Premier to continue focusing on the advancement of the Zulu Lithium and Tantalum Project and its broader operational objectives, Premier said.
The company issued 881.71m shares to discharge roughly £0.163m of invoices and a further 295.77m shares to settle approximately £0.054m owed in respect of accrued but unpaid salaries and payments to former consultants and directors, all at the same issue price as the placing announced on 13 May.
Following the issue, the company's issued share capital will total 39.3bn shares, meaning the settlement shares represent approximately 3.0% of the enlarged share capital.
Application has been made for the Settlement Shares to be admitted to trading on AIM and admission is expected to take place on or around 27 May, with the new shares ranking pari passu with existing shares.
