Premier African Minerals shares were slightly higher on Thursday after confirmation the Premier African CEO was increasing his loan to the company to £2m.
Premier African Minerals shares were 2% higher at the time of writing on Thursday.
The move by CEO George Roach can be interpreted either as a CEO having confidence in the business, or the company being in a tricky financial situation with few options for financing requiring the CEO to step in.
Nonetheless, Premier African Minerals shareholders are facing a tense couple of days ahead of a general meeting (GM) to be held 12th August.
The GM is setting about disapplying preemption rights in order to enhance Premier African Minerals’ ability to raise capital. The company said if the resolution is not passed, they may be forced into a heavily discounted open offer.
Whether the resolution passes or not, the fact the GM is being pushed forward by the company suggests there is a considerable need for capital which will likely be satisfied through the issue of new shares.
Premier African Minerals are currently locked into negotiations with lithium offtake Canmax after Canmax issued a termination notice due to a failure to meet production targets. Canmax has a 13% stake in Premier African Minerals.