The Premier African Minerals Ltd (LON: PREM) share price rallied 17.9% after announcing that the resolution proposed at its general meeting (GM) held on Friday, 12 August 2023, was successfully approved by shareholders during the meeting.
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Investors were pleased to see that the company’s shareholders agreed with the board on issuing additional shares to raise funds for its operations. The company noted that it had resolved the ongoing dispute with CanMax regarding the offtake agreement and the prepayment.
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Premier is a multi-commodity mining and natural resource development firm focused on Southern Africa with its Zulu Lithium and RHA Tungsten projects in Zimbabwe. The company also reiterated that it would be drawing down on the £2 million loan facility offered by its CEO, George Roach.
The CEO’s willingness to back the company by lending his monies to help it remain operational demonstrates his confidence in the firm. It is usually a good sign to see company insiders investing in the firm through stock purchases or loans, like in PREM’s case.
PREM shares rallied higher after the company confirmed that shareholders had approved the issuance of an additional five billion (5,000,000,000) ordinary shares and to authorise the Directors of the Company to issue, or grant any right to subscribe for or convert any security into, shares according to the provisions of this resolution.
Premier African Minerals had served CanMax with a Force Majeure notice on 25 June 2023 regarding its ability to meet its delivery commitments under the terms of the Agreement with CanMax. The company experienced delays due to technical issues that affected its commitments.
However, it is remarkable that the two firms have resolved their issues and are about to unveil a new agreement based on the current situation. Premier has agreed to the terms of an amended Offtake and Prepayment Agreement with Canmax Technologies Co., Ltd, and will make another announcement shortly.
The rally in PREM shares was justified, given the results of the general meeting held on Friday. The company's future looks promising, making it an attractive investment.
Premier African (PREM) share price.
The Premier African Minerals (PREM) share price rallied 17.86% to trade at 0.66p, from Friday’s closing price of 0.56p.
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