Premium Resources completes recapitalisation, appoints new CEO
TSX-V-listed explorer Premium Resources has completed the recapitalisation of the company, including a C$46-million equity private placement and the equity conversion of its C$20.88-million term loan debt.
The company, which is focused on the redevelopment of previously producing nickel, copper and cobalt mines in Botswana, has closed its nonbrokered private placement issuing 153.33-million units at C$0.30 each.
The net proceeds of the placement will be used for exploration and development of its mineral assets in Botswana.
Further, Premium appointed Morgan Lekstrom as CEO and director, with effect from Thursday.
Lekstrom has a diverse background and an established track record of delivering successes, including most recently, the successful building of NexGold Mining, creating a near term development company with a clear path to building two new Canadian gold mines. This was accomplished through deleveraging and restructuring debt, setting a new strategic direction for the company through multiple back-to-back mergers and acquisitions of Blackwolf Copper and Gold and Treasury Metals, and then Signal Gold in 2024. Lekstrom has held senior technical roles with experience at Freeport McMoran's Grasberg site in Indonesia and Rio Tinto's Oyu Tolgoi project in Mongolia. He has direct African experience though his role with Golden Star Resources in supporting the redevelopment of an underground mine in Ghana.
Paul Martin will transition from his role as interim CEO to chairperson of the board.
"From the beginning of this transaction, Morgan took on the leadership role in advancing the company's recapitalisation and I am confident he will positively impact the company's strategic direction going forward,” said Martin.
Premium’s flagship assets are the Selbi and Selkirk mines. Both assets are currently on care and maintenance.
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