Canmax Converts Interest into Shares, Bolstering Premier African Minerals Position

Premier African Minerals Canmax interest conversion explained

Premier African Minerals has told the market that Canmax Technologies has chosen to convert part of the interest it is owed into new Premier shares, rather than being paid in cash. In plain English, Premier is settling a bill with shares.

The amount being converted is US$628,702.23, which the company says is equivalent to £466,158. In return, Canmax will receive 2,770,506,833 new ordinary shares at an average issue price of 0.016826 pence per share.

This move is being made under the Addendum to the Restated and Amended Offtake and Prepayment Agreement, first announced on 24 December 2024. The agreement gives Canmax the right, at its own discretion, to take partial repayment of interest in shares so that it can maintain 13.38% of Premier on a fully diluted basis – meaning after taking into account shares that could potentially be issued, not just the current share count.

Key Premier African Minerals RNS numbers investors should note

Item | Figure
Accrued interest converted | US$628,702.23
Sterling equivalent | £466,158
New shares issued to Canmax | 2,770,506,833
Average issue price | 0.016826 pence
Expected AIM admission | On or around 14 July 2026
Total shares after issue | 46,074,267,822
Canmax target holding under agreement | 13.38% on a fully diluted basis

The new shares will rank pari passu with existing shares, which simply means they carry the same rights as the shares already in issue.

Breakdown of the four Canmax interest conversions

This was not one single calculation pulled out of thin air. The conversion relates to four separate Premier fundings announced since 28 April 2026, with the issue price for each conversion linked back to the funding price at the time.

Funding announcement date | Interest converted | Conversion price | New shares issued
11 June 2026 | £154,467.79 / US$208,809.56 | 0.0136 pence | 1,135,792,576
20 May 2026 | £154,467.79 / US$208,886.79 | 0.0185 pence | 834,961,029
13 May 2026 | £33,648.18 / US$45,206.33 | 0.0185 pence | 181,882,066
28 April 2026 | £123,574.23 / US$165,799.55 | 0.0200 pence | 617,871,162

The lower the issue price, the more shares needed to settle the same amount of money. That is exactly why the 11 June 2026 conversion produced the largest chunk of new shares.

Why this Premier African Minerals share issue matters

The big positive is straightforward: Premier keeps cash inside the business. Instead of paying out nearly half a million pounds in cash equivalent, it issues shares to settle the accrued interest.

For a company where funding flexibility matters, that is useful. Cash can be directed elsewhere, whether that is operations, project development, or simply day-to-day breathing room. The RNS does not say how Premier will use the cash it has effectively preserved, so that part is not disclosed.

There is also a balance sheet angle. Converting accrued interest into equity removes that specific interest liability from hanging around unpaid. It does not mean Premier has raised fresh money in this announcement, and it does not tell us anything new about the remaining principal or wider obligations under the agreement. Those details are not disclosed here.

The downside for PREM shareholders – dilution is real

Now for the part existing shareholders will not love: dilution. Premier is issuing 2.77 billion new shares, taking the total number of shares in issue to 46,074,267,822.

That means each existing share now represents a slightly smaller slice of the company than before. Based on the enlarged share capital, these new shares amount to roughly 6.0% of the total share count after the issue. That is not trivial.

This is the trade-off with equity-based settlements. Premier avoids a cash payment today, but shareholders pay for that relief through a bigger share count.

What the 13.38% Canmax holding clause tells investors

This part is worth paying attention to because it says a lot about the relationship between Premier and Canmax. Under the addendum, Canmax has the right to receive shares in order to continue holding 13.38% on a fully diluted basis immediately following a funding by Premier, and on similar terms.

That effectively gives Canmax a mechanism to protect its percentage position when new shares are issued in certain situations. Retail investors should read that as a sign that Canmax wants to stay economically aligned and maintain influence, rather than simply collecting cash interest and stepping back.

There is a positive spin and a cautionary spin here. Positively, Canmax is willing to take shares, which suggests it still sees value in staying exposed to Premier. On the cautious side, it means future funding activity can continue to feed more share issuance, which may keep pressure on dilution.

The exact number of shares Canmax will hold after this conversion is not disclosed in the announcement. What we do know is the company has structured these rights so Canmax can preserve that percentage on a fully diluted basis.

Is the Premier African Minerals Canmax conversion good or bad?

My take is that this is modestly positive operationally, but mixed for shareholders. It is positive because Premier is conserving cash and dealing with accrued interest without another direct cash outflow. For a smaller mining company, that matters.

But it is not a clean win. There is no new cash coming in, and shareholders are getting diluted again. If you already worry about Premier’s capital structure and repeated share issuance, this RNS will not calm you down.

The more encouraging interpretation is that Canmax is still prepared to accept equity exposure instead of demanding cash. That suggests a continuing commercial relationship and at least some willingness to back the paper. The less encouraging interpretation is that the company remains dependent on arrangements that create more shares.

Bottom line on the Premier African Minerals RNS

This announcement is really about cash preservation versus dilution. Premier has used shares to settle £466,158 of accrued interest owed to Canmax, and Canmax has used its contractual rights to maintain its position.

If you are a retail investor, the key message is simple. Premier gets short-term breathing space on cash, but the share count keeps climbing. In small-cap mining, that balance matters a lot – and this RNS lands firmly on that fault line.

Admission of the new shares to AIM is expected on or around 14 July 2026. Once that happens, the market will be dealing with a bigger share base and another reminder that financing structure remains central to the Premier African Minerals investment case.