Premier African Minerals Limited has settled outstanding liabilities worth about £0.217 million through the issuance of more than 1.17 billion new ordinary shares, a move the company says is aimed at preserving working capital while advancing its Zimbabwean lithium operations.
In a trading update, the mining firm said it had reached an agreement with creditors to convert debt into equity as part of its broader creditor management strategy.
“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,” the company said.
The company settled creditor invoices totalling approximately £0.163 million through the issue of 881,706,541 new ordinary shares at an issue price of 0.0185 pence per share, matching the price used in its most recent capital raise announced earlier this month.
An additional £0.054 million relating to accrued but unpaid salaries, as well as payments owed to former consultants and directors, was cleared through the issuance of a further 295,769,135 shares at the same price.
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“In aggregate, the Company has agreed to issue 1,177,475,676 new ordinary shares pursuant to the settlement arrangements,” the company confirmed.
The newly issued shares are expected to be admitted to trading on the AIM market around 27 May 2026 and will rank equally with existing ordinary shares.
Following the transaction, Premier’s issued share capital will rise to 39.3 billion ordinary shares with voting rights. The company noted that this figure will serve as the reference point for shareholders assessing disclosure obligations under the Financial Conduct Authority’s Disclosure and Transparency Rules.
Premier said the announcement constitutes inside information under the UK Market Abuse Regulations, adding that chief executive Graham Hill authorised the release of the statement.
The AIM-listed miner is focused on developing a diversified portfolio of mineral assets across southern Africa, including tungsten, lithium, tantalum and rare earth elements.
Its flagship Zulu Lithium and Tantalum Project in Zimbabwe remains central to the company’s strategy as global demand for battery minerals continues to grow.
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