It was reported by the Board of the BVI-registered company Premier African Minerals Limited that together with Regent Mercantile Holdings Limited they agreed to extend the repayment terms of the convertible loan note for US$350,000, which was entered into in June 2019.
Under the terms of the Loan Agreement and related Subscription Agreement, signed with Regent, the BVI company had to make two equal payments on 1 August 2019 and 1 September 2019. In case Premier failed to make direct repayment of the Loan Agreement, Regent could convert any percentage of payment into new shares of the BVI company, at a conversion price equal to 90 per cent of the daily volume weighted average price.
According to the extension agreement, the Premier will have to repay the principal amount including any interest under the Loan Agreement until 31 January 2020. In consideration of the repayment extension for the period, Regent will have the right to elect a Conversion of the Principal Amount. Upon the expiry of the period the BVI company will have 5 days to settle any outstanding amounts under the Loan Agreement, including all outstanding interest thereon.