A group of investors led by Canada's Frank Giustra and his Fiore Group (Fiore) is pumping almost $40mn into TSX-V-listed Premium Resources (Premium) which is developing brownfield nickel, copper and cobalt projects in Botswana.

Premium said in a release on February 18 that Giustra and Fiore have invested $25mn in the firm, which is redeveloping the Selebi and Selkirk mines.

Also, Premium's largest shareholder, EdgePoint Investment Group has agreed to convert its $14.6mn loan to Premium into equity. 

"Upon 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," Premium said in the update.

"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."

The company has also appointed Morgan Lekstrom as its new CEO and Mathew August as strategic advisor on US Capital Markets and Department of Defence Relations.

Giustra commented:

"Having witnessed the dedication of our team and assessed the substantial value of this asset package, particularly in what I consider a Tier One jurisdiction, it became evident to me that it is significantly undervalued compared to industry peers. The 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."