Premium Resources Limited, the new investor in the former BCL mine, has outlined an ambitious plan to restructure and capitalise on the mineโs assets, aiming to maximise its full potential and establish it as a key supplier of critical minerals.
The company, which now controls the permitted Selebi and Selkirk properties, says its strategic realignment under new leadership provides a clear path toward full operational recovery.
In an updated report, the company announced โa significant refinancing, including the introduction of a new strategic investor group led by a lead order from Frank Giustra, Andrew Bowering, and Mathew August, the provision of Fiore Management Group services, and the appointment of incoming Chief Executive Officer (CEO) Morgan Lekstrom.โ The company also announced the deleveraging of its balance sheet through the conversion of its term loan debt into equity, with support from its lender and largest shareholder, EdgePoint Investment Group Inc.
Premium Resources plans to recapitalise through a C36million(approximatelyP351million) equityfinancing and convert C36million (approximatelyP351million) equityfinancing and convert C20.8 million (about P208 million) of debt into equity, which will strengthen its balance sheet and management team.
According to the company, โThis restructuring and capitalisation under new leadership creates a clear path forward for maximising the potential value of the Company’s permitted Selebi and Selkirk properties and positions the Company as a vital source of critical minerals.โ
Premium Resources Ltd has emphasised its commitment to revitalising the once-thriving mining operation, which was shuttered in 2016 due to financial constraints.
โUpon completion of the Private Placement and the Debt Conversion, the Company will have successfully deleveraged its balance sheet and strengthened its management team with accomplished mining professionals,โ the company said. It added that this positions it to โpursue 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.โ
The company stated, โThis new strategic direction includes a review of all opportunities to maximise the revenue potential of the two past-producing mines, as well as the overall size potential and expansion for each.โ It also noted, โThe 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.โ
Premium Resources added that it โwill also be able to assess the broader mineral potential at both Selebi and Selkirk, including drill testing the deeper borehole electromagnetic plates (‘BHEM’) that have been identified but not yet tested.โ The company is also evaluating the use of proven technologies to assess the overall geological potential and complement the identification of the BHEM plates, helping to focus future drilling programs.
Frank Giustra, the leading strategic investor, said, โHaving witnessed the dedication of our team and assessed the substantial value of this asset package, particularly in what I consider a Tier 1 jurisdiction (Botswana), it became evident to me that it is significantly undervalued compared to industry peers.โ He added, โThe team’s vision, which highlights exciting near-term catalysts, resonated strongly with me. Its prime location in Africa is set to capture the interest of larger companies and strategic investors alike; the forthcoming execution plan represents a promise of immediate value.โ
Interim CEO and incoming Chairman of the Board, Paul Martin, said, โWe are very excited to welcome Frank Giustra, Andy Bowering, Michael Murphy, and Mathew August as strategic partners.โ He added, โI am encouraged that such high-caliber individuals are joining the Company, and I take their involvement as further confirmation of the potential of our Botswanaassets.โ
Incoming CEO Morgan Lekstrom said, โWe are proceeding through a careful and phased strategy to develop the Selebi and Selkirk assets, aiming to establish a strategically located and sustainable global supply of critical metals.โ He added, โSupported by established infrastructure, a transparent permitting framework, and a robust partnership with Botswana’s new government, the Company will be well-positioned, once recapitalised, to make the strategic decisions and investments necessary to propel these projects forward.โ
