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Premier African Min - Corporate Update

RNS Number : 0784B
Premier African Minerals Limited
28 January 2020
 

Premier African Minerals Limited / Ticker: PREM / Index: AIM / Sector: Mining

For immediate release

28 January 2020

 

Premier African Minerals Limited

Corporate Update

 

The Board of Premier African Minerals Limited ("Premier" or the "Company") Limited ("Premier" or the "Company") is pleased to announce the signing  of a Cooperation Agreement with MN Holding Limited ("MNH") for the supply of mining and exploration machinery and the professional assistance with the optimization of the Premier's various mining and exploration operations, collectively the "Services" ("Corporation Agreement").

George Roach, CEO, commented that, "This is another step towards the revival of RHA Tungsten Private Limited ("RHA") and apart from the reprocessing of tailings whilst we bring the underground development back to life, the dramatically reduced cost of operating a mining fleet arising from the association with MNH, will encourage a re-evaluation of the possible restarting of open pit operations as well.

I have now completed two site visits with the management of MNH and the complete route to locate the equipment and the route to Walvis Bay for future export has been surveyed and approved. In situ inspection of the tailings to be reprocessed has resulted in agreement on necessary equipment and MNH will now commence with mobilisation. MNH have also agreed to make available their professional expertise to assist RHA and will be the operators of the mining fleet. The potential exists to see further operating cost reductions flowing from the integration of MNH expertise.

At the same time, a 5-ton bulk sample of underground ore is now cleared for shipment to undergo detailed test work leading up to the optimisation of the process long budgeted for. During this test work, we will look also to optimise the concentrates now able to be produced both to improve the concentrate grade as to understand whether or not any other mineral is profitably recoverable. Other minerals specifically include copper that is coexistent with gold traces."

Key terms of the Corporation Agreement

The Corporation Agreement will initially provide Premier with the following plant and equipment for use at RHA:

1)    Two cubic meter Wheel loader;

2)    20-ton Dump Truck;

3)    Tractor/water bowser for dust suppression with alternate blade for road work; and

4)    1 x 4-wheel drive Tractor-Loader-Backhoe.

This Agreement will commence from today and will continue until terminated by either party by giving four months written notice of termination. MNH will supply its Services on the basis that the total cost to Premier will be the sum of all reasonable net disbursements incurred by the Provider in provision of the Services. Payment for the Services will initially be made against receipt of proceeds from the sale of Wolframite concentrate at RHA.

This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014. The person who arranged the release of this announcement on behalf of the Company was George Roach.

 

Enquiries:

Fuad Sillem

Premier African Minerals Limited

Tel: +44 (0)7734 922074

Michael Cornish / Roland Cornish

Beaumont Cornish Limited

(Nominated Adviser)

Tel: +44 (0) 20 7628 3396

Jerry Keen/Edward Mansfield

Shore Capital Stockbrokers Limited

Tel: +44 (0) 20 7408 4090

 

Notes to Editors:

Premier African Minerals Limited (AIM: PREM) is a multi-commodity mining and natural resource development company focused on Southern Africa with its RHA Tungsten and Zulu Lithium projects in Zimbabwe.

 

The Company has a diverse portfolio of projects, which include tungsten, rare earth elements, lithium and tantalum in Zimbabwe, encompassing brownfield projects with near-term production potential to grass-roots exploration. The Company holds 5,010,333 shares in Circum Minerals Limited, the owners of the Danakil Potash Project in Ethiopia, which has the potential to be a world class asset. In addition, the Company holds a 10% interest in MN Holdings Limited, the owner and operator of the Otjozondu Manganese Mining Project in Namibia.

 

Forward Looking Statements:

Certain statements in this announcement are, or may be deemed to be forward looking statements. Forward looking statements are identified by their use of terms and phrases such as ''believe'' ''could'' "should" ''envisage'' ''estimate'' ''intend'' ''may'' ''plan'' ''will'' or the negative of those variations or comparable expressions including references to assumptions. These forward-looking statements are not based on historical facts but rather on the Directors' current expectations and assumptions regarding the Company's future growth results of operations performance future capital and other expenditures (including the amount. nature and sources of funding thereof) competitive advantages business prospects and opportunities. Such forward looking statements reflect the Directors' current beliefs and assumptions and are based on information currently available to the Directors.  A number of factors could cause actual results to differ materially from the results discussed in the forward-looking statements including risks associated with vulnerability to general economic and business conditions competition environmental and other regulatory changes actions by governmental authorities the availability of capital markets reliance on key personnel uninsured and underinsured losses and other factors many of which are beyond the control of the Company. Although any forward-looking statements contained in this announcement are based upon what the Directors believe to be reasonable assumptions. The Company cannot assure investors that actual results will be consistent with such forward looking statements.


This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [email protected] or visit www.rns.com.
 
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Quick facts: Premier African Minerals Ltd

Price: 0.065

Market: AIM
Market Cap: £7.43 m
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