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Premier African Minerals ltd.

05/28/2019 | Press release | Distributed by Public on 05/28/2019 07:07

Zulu Lithium Drilling Programme Update

For immediate release

28 May 2019

Premier African Minerals Limited

Zulu Lithium Drilling Programme Update

Cancellation of KME Payment Shares

Following the announcement dated 15 May 2019, Premier African Minerals Limited ('Premier' or the 'Company') reports that it has been unable to conclude a revised pricing structure for the long form drilling contract that was commercially acceptable to both Premier and KME Plant Hire Proprietary Limited ('KME') that fairly reflected the revised relationship for the next phase of drilling activities at Premier's wholly-owned Zulu Lithium Project ('Zulu') in Zimbabwe. The proposed drilling programme with KME will not therefore now proceed and discussions with KME have been terminated. The Company will now urgently reopen previous discussions held with the previous drilling contractor to look to recommence drilling activities at Zulu as Premier believes their familiarity with Zulu should expedite the engagement process.

As previously announced, the Company had issued, within the Company's existing share authorities,212,413,793 new Ordinary Shares of nil par value at an issue price of 0.145p per share ('KME Payment Shares') to KME as pre-payment for mobilisation and drilling and the KME Payment Shares were admitted to trading on AIM on 4 March 2019.The KME Payment Shares, while issued had not been released by Premier to the control of KME, pending execution of the long form drilling contract. As the long form drilling contract with KME will not now proceed, Premier has cancelled the 212,413,793 KME Payment Shares and application will be made to AIM for the cancellation of the KME Payment Shares from trading on AIM, which is expected to occur on or about 4 June 2019 .

Total Voting Rights

Following the cancellation of the KME Payment Shares, the Company's issued share capital consists of 7,828,124,187 Ordinary Shares, with voting rights. This figure may be used by shareholders in the Company as the denominator for the calculation by which they will determine if they are required to notify their interest in, or a change to their interest in, the share capital of the Company under the Financial Conduct Authority's Disclosure and Transparency Rules.

Enquiries:

Fuad Sillem

Premier African Minerals Limited

Tel: +44 (0)7734 922074

Michael Cornish / Roland Cornish

Beaumont Cornish Limited

(Nominated Adviser)

Tel: +44 (0) 20 7628 3396

Jerry Keen/Edward Mansfield

Shore Capital Stockbrokers Limited

Tel: +44 (0) 20 7408 4090

Tom Curran/Elliot Hance

SVS Securities Limited

Tel: +44 (0) 20 3700 0100

Forward Looking Statements:

Certain statements in this announcement are or may be deemed to be forward looking statements. Forward looking statements are identified by their use of terms and phrases such as ''believe'' ''could'' 'should' ''envisage'' ''estimate'' ''intend'' ''may'' ''plan'' ''will'' or the negative of those variations or comparable expressions including references to assumptions. These forward-looking statements are not based on historical facts but rather on the Directors' current expectations and assumptions regarding the Company's future growth results of operations performance future capital and other expenditures (including the amount. nature and sources of funding thereof) competitive advantages business prospects and opportunities. Such forward looking statements reflect the Directors' current beliefs and assumptions and are based on information currently available to the Directors. Many factors could cause actual results to differ materially from the results discussed in the forward-looking statements including risks associated with vulnerability to general economic and business conditions competition environmental and other regulatory changes actions by governmental authorities the availability of capital markets reliance on key personnel uninsured and underinsured losses and other factors many of which are beyond the control of the Company. Although any forward-looking statements contained in this announcement are based upon what the Directors believe to be reasonable assumptions. The Company cannot assure investors that actual results will be consistent with such forward looking statements.

This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014. The person who arranged the release of this announcement on behalf of the Company was George Roach.

Notes to Editors:

Premier African Minerals Limited (AIM: PREM) is a multi-commodity mining and natural resource development company focused on Southern Africa with its RHA and Zulu projects in Zimbabwe.

The Company has a diverse portfolio of projects, which include tungsten, rare earth elements, lithium and tantalum in Zimbabwe, encompassing brownfield projects with near-term production potential to grass-roots exploration. In addition, the Company holds 5,010,333 shares in Circum Minerals Limited ('Circum'), the owners of the Danakil Potash Project in Ethiopia.

ENDS