Premium Resources, a Canadian company focused on redeveloping the previously operational Selebi and Selkirk Mines in Phikwe and Francistown, has closed a deal to secure C$46 million ( over P436 million ) in funding to continue revitalizing the mines. This capital will support the company’s efforts to transform the mines into significant producers of critical minerals.
The Company has closed its non-brokered Private Placement issuing 153,333,334 units (each, a “Private Placement Unit”) of the Company at a price of C$0.30 per unit for aggregate gross proceeds of C$46,000,000. Each Private Placement Unit consists of one common share of the Company and one-half of one common share purchase warrant (each whole warrant, a “Private Placement Warrant”) of the Company.
Each Private Placement Warrant entitles the holder thereof to acquire one additional common share at a price of C$0.55 per share until March 18, 2028.
In connection with the Private Placement, the Company issued 4,000,000 common shares at an issue price of C$0.30 per share to TriView Capital Ltd. for its services as finder and made cash payments totalling C$307,584 to other agents acting as finders under the Private Placement.
The net proceeds of the Private Placement are expected to be used by the Company to advance the exploration and development of its mineral assets in Botswana and for general corporate and working capital purposes.
This positions the Company to pursue a more significant strategic direction, including evaluating both the Selebi and Selkirk past producing mines for their potential to become an integral part of the larger critical metals supply chain.
This new strategic direction includes a review of all opportunities to maximize the revenue potential of the two past producing mines as well the overall size potential and expansion for each.
Additionally, Premium Resources said the existing economic development zone at Selebi-Phikwe offers economic incentives, including future permitting acceleration to potentially support this direction.
The Company will also be able to assess the broader mineral potential at both Selebi and Selkirk, including drill testing the deeper borehole electromagnetic plates.
