Premier African Minerals Share Discussion Threads

[dr jekyll] 23/8/2017 15:40

Nice post hd.

[hiddendepths] 23/8/2017 15:32

Interesting discussion! Please note I do like the assets, which is why I'm paying attention. I do not think that George has lost his mind. I think that he could have got a much better finance deal than the one with Ya. There was a good story to tell, a share price that was soaring and I think any broker worth his salt could have raised a substantial amount traipsing round the City telling the unfolding Zulu and Circum stories. I would suggest that a hefty placing at 1p was quite plausible.

But the chosen route has done damage to sentiment and the share price as well as raising less cash than a more straightforward placing would have done and I suspect it will take time for the company to regain its reputation. These visits to the likes of Ya are a big red flag for many institutional investors. And guaranteed selling ahead is unhelpful for a few months.

I didn't want to sell after the financing was announced but did so straight away. I want to get back in but will wait until I'm comfortable that the wretched financing has run its course. If that means I have to pay up in a few months time, sobeit.

I hope you holders don't think I'm being unfairly negative here. I'm sure that I affect the share price about as much as Dmitri (ie not at all). I wish you well and if your sitting tight pays off you deserve your success.

[andrewsr] 23/8/2017 15:25

With the usual ignorance.

[dmitribollokov] 23/8/2017 15:23

Anyway - how's the mkt viewing it?

[andrewsr] 23/8/2017 15:10

Timw3, GKP had debts of $575m, hardly comparable!

[timw3] 23/8/2017 15:05

You got it.!! GL Vitec and no need to appologise.

we all have our own views.

[vitec] 23/8/2017 14:22

Come to think of it you were positive in the past and ramping PREM. I owe you an apology your behaviour is completely consistent with the past. Ramp whilst you think the CEO has not lost his marbles and then deramp when you think he has.

[timw3] 23/8/2017 14:06

did you not fully understand my last message?

[vitec] 23/8/2017 14:04

Well you seem to think George has lost his! How comes you are not ramping PREM?

[timw3] 23/8/2017 14:00

Yes i had good reason to ramp prior to the CEO losing his mind!!

[vitec] 23/8/2017 13:55

Not if a deal for Zulu is struck and PREM receives monies.

[dragonboy] 23/8/2017 13:44

where will the company get money to repay back some of the proceed?

More placing?

It's a vicious circle.

[vitec] 23/8/2017 13:41

timw3 were these shares that you ramped before their demise?

[vitec] 23/8/2017 13:39

I have written about share consolidation.

Yes the company may have to return some of the proceeds but I think they are banking on what they know and how they believe it is going to pan out. I always saw the YA deal as expediency and not necessity. There is a major difference. It seems that George needs to pull several proverbial rabbits out of the hat but he may feel this is very doable in the sense of what HE and the BOD know today.

If George is destroying shareholders wealth then he is destroying his own wealth in the process as he is the biggest shareholder by far. The dilution that is occurring is so that he can purchase shares in Circum as he sees it at a knock down price.

I remember when PREM languished at .3p per share and I was actively buying. The issue at that time was there were very few buyers. As soon as momentum picked up then others started to buy and the share price rose. What's my point. Well that was the time PREM was unloved. Today it seems it is unloved and it is easy to see the negatives and forget about the positives. Read the RNS's regarding Circum and Zulu it is all there. The only real issue today is George is not doing what the majority want and within the time frame they want it. Companies don't dance to the beat of individual shareholders throwing their toys out of their prams because the share price does not rise daily. They get on with the business of trying to build a sustainable, profitable company that rewards all of its employees and shareholders unlike.

Anyone doubting what is going on here should bail. You have been given the freedom of choice and if you don't believe then what is the point in staying invested. For what it is worth. I have reappraised my expectations and now have reset to see what happens over the next 3 to 6 months which should be ample time to see some major developments.

[timw3] 23/8/2017 13:29

ASSETS been f all. SNRP, RKH, GKP all had assets. Look what happened next when DEBT took over!

[andrewsr] 23/8/2017 13:28

The finance deal and level of debt here is noteworthy as being negligible relative to the assets owned and being accumulated.

[dragonboy] 23/8/2017 13:08

However, should the Company's share price not perform positively, then the Company may receive less than the GBP3.3 million Sharing Payment, and if its share price falls substantially, the Company may have to return some of the proceeds of the Subscription to D-Beta.

In no event, will fluctuations in the Company's share price result in any increase in the number of the Subscription Shares issued by the Company or received by D-Beta.




if its share price falls substantially, the Company may have to return some of the proceeds of the Subscription to D-Beta.

[mike_f] 23/8/2017 13:07

Worth a read for those who are unfamiliar with how good the Danakil project of Circum's is:

[dragonboy] 23/8/2017 13:03

Vitec do you realise he's destroying shareholders wealth.

and more placing keep coming at lower price, means shares are multiplying like rabbits.


Next stage, I am afraid is share re-organisation, about 20-1 or 50-1

[vitec] 23/8/2017 13:00

Bionic, In the fullness of time one of us will be proven right.

Unless George is booked in to have his brain scanned then I believe he has a plan. If I am wrong, I will need to book myself in for a brain scan and think how did I make such an error of judgment. I am human and fallible and make mistakes but still believe the story as frustrating as that can be at times.

[vitec] 23/8/2017 12:55

It also amazes me that the distractors and the disbelievers try to take the higher ground by telling us that they are not surprised by the issuance of more shares to purchase Circum shares. Anyone that had taken the trouble to read the RNS's and the shareholder presentation would have known that this was going to happen. If there was a series of events that were as plain as the nose on your face, then the purchasing of Circum shares for PREM shares were it. That is why the share price cannot make headway.

[bionicblabbermouth] 23/8/2017 12:52

Vitec this is exactly what they have done.

This basically gathering money just to keep the wheels greased.

[bionicblabbermouth] 23/8/2017 12:52

Equity Funding Summary

Premier has also today entered into an equity funding facility consisting of two parts. The first part is a subscription to raise GBP4.8 million, before costs (the "Subscription"), by way of a subscription for 685,714,286 ordinary shares of 0.7 pence each (the "Subscription Shares") by Delta-Beta One EQ Ltd ("D-Beta") at a subscription price of 0.7 pence per Ordinary Share (the "Subscription Price"). The Subscription Shares will represent approximately 13% of the enlarged ordinary share capital of the Company.

Out of the proceeds of the Subscription GBP3.3 million will be returned by the Company to D-Beta as payment ("Sharing Payment") under the equity sharing agreement (the "Equity Sharing Agreement") and the balance of GBP1.5 million will be retained by the Company ("Net Subscription Proceeds").

The Net Subscription Proceeds (net of costs and commissions), will be used to provide additional funding for the Company's continuing operations and general working capital. In respect of monthly receipts from the Equity Sharing Agreement (as described further below) the Company has agreed that the first GBP900,000 and 50% of all receipts in excess of GBP900,000 will be used first to repay any amounts owing under the Loan Agreement. Any balance of receipts will be used by the Company for general working capital purposes.

The Equity Sharing Agreement entitles the Company to receive back the Sharing Payment on a pro rata monthly basis over a period of 12 months, subject to adjustment upwards or downwards each month depending on the Company's share price during the previous month, as explained in more detail below. The Equity Sharing Agreement provides the opportunity for the Company to benefit from positive future share performance. However, should the Company's share price not perform positively, then the Company may receive less than the GBP3.3 million Sharing Payment, and if its share price falls substantially, the Company may have to return some of the proceeds of the Subscription to D-Beta.

In no event, will fluctuations in the Company's share price result in any increase in the number of the Subscription Shares issued by the Company or received by D-Beta.

Further details of the Equity Sharing Agreement

On completion of the Subscription, the Company shall pay D-Beta the Sharing Payment of GBP3.3 million. The Equity Sharing Agreement provides for a monthly payment to be made by D-Beta to the Company, being GBP275,000 for 12 months (the "Monthly Payment"). Each Monthly Payment may be adjusted up or down depending on whether the average of the lowest ten daily VWAPs of the Ordinary Shares of the Company during the preceding month (the "Monthly Price") is above or below 0.77 pence per Ordinary Share (the "Benchmark Price").

If the Monthly Price is below the Benchmark Price, then the Monthly Payment is reduced based on the following formula:

[vitec] 23/8/2017 12:51

Do you really think George and the BOD would go down a route that would jeopardise the whole company for the sake of purchasing more Circum shares? There must be a plan and we are not privy to it.

[bionicblabbermouth] 23/8/2017 12:48

How do they pay YA?


This is a busted flush.


Come back at 0.1p for the dead cat bounce