Premium Resources Ltd. (PREM) reported a significant increase in its financial performance for the first quarter of 2025, with total assets rising to $63.8 million, up from $25.0 million at the end of 2024. The company’s cash and cash equivalents surged to $45.5 million, compared to $6.1 million in the previous quarter, primarily due to a successful private placement that raised $46 million. However, the company also reported a net loss of $15.2 million for the quarter, which is an increase from the $9.3 million loss recorded in the same period last year. This loss was largely attributed to a $5.98 million loss on the extinguishment of a term loan and increased general and administrative expenses.
In terms of operational developments, Premium Resources has made strategic moves to enhance its exploration capabilities. The company has initiated a comprehensive drilling program at its flagship Selebi Mines in Botswana, targeting potential new mineralized horizons. The exploration strategy includes surface drilling at Selebi Main and underground resource expansion drilling at Selebi North. The company has also strengthened its management team, appointing Morgan Lekstrom as the new CEO and adding strategic advisors to support its growth initiatives.
The company’s exploration and evaluation expenditures for the quarter totaled $6.1 million, a decrease from $6.7 million in the prior year, reflecting a temporary pause in drilling activities to conserve cash. The total exploration and evaluation assets increased to $9.0 million, up from $8.8 million at the end of 2024. The company has also reported a significant increase in its share capital, with 428.9 million common shares outstanding as of March 31, 2025, compared to 185.7 million at the end of the previous year.
Looking ahead, Premium Resources is focused on advancing its exploration projects and enhancing its resource potential. The company plans to continue its drilling programs and metallurgical studies to optimize processing methods. However, it acknowledges the need for additional financing to support its ongoing operations and meet future commitments, particularly regarding the second and third installments of its asset purchase agreements for the Selebi Mines. The company remains committed to its strategic direction and aims to leverage its recent capital raise to drive growth in the coming quarters.
About Premium Resources Ltd.
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