-- adds broker comment --
Premier African Minerals (LON:PREM) has agreed a US$250,000 bridging loan with chairman and chief executive George Roach to tide it over while construction work continues at its RHA Tungsten Project.
Repayment and conversion terms for an existing US$766,692 working capital loan to the company have also been agreed. The two loans, which are both unsecured, pay interest at the rate of LIBOR plus 3%.
The bridge facility, together with any accrued interest, will become repayable as soon as the final funding has been secured for the construction work at RHA, while the working capital facility becomes due when other loans have been paid back. Alternatively, Roach can choose to convert all or part of the two loans into equity.
Broker Northland said it was a positive that Roach continues to back Premier African Minerals having already invested a significant amount of his own capital into the company.
Premier African has indicated that it expects to have the final tranche of finance for RHA secured within 9-13 days and this will be a major de-risking event for the company.
Shares eased 8% to 1.44p.
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