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Premier African Min - MN Holdings Limited Update

RNS Number : 3031Q
Premier African Minerals Limited
18 June 2020
 

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

For immediate release

 

 18 June 2020

 

Premier African Minerals Limited

 

MN Holdings Limited Update

 

Premier African Minerals Limited ("Premier" or the "Company") is pleased to report an update on operations at the Otjozondu Manganese Mining Project ("Otjozondu") that has been provided by the management of Otjozondu. Premier hold 19% of the shares in MN Holdings Limited, the owners and operators of Otjozondu.

 

Highlights

 

·    Offtake finance credit review to extend facility to cover additional costs associated with production ramp up

 

Commenting, George Roach Premier CEO said, "The offtake partners have confirmed to Otjozondu that they are reviewing the existing uncommitted credit facility with the intention of increasing prepayment for manganese ore in two equal tranches each $300,000, in the ensuing months. This planned increase in offtake finance will ease funding requirements associated with increasing the mine production rate and help fund the lead time between production, shipment and final payment on outturn at the destination port.

 

Local logistics, to some extent still affected by Covid-19 issues are limiting shipments to a load per week, each load circa 1,405 ton of Mn lump ore. To help overcome this, Otjozondu plans to relocate the container loading facility to Walvis Bay from the present location at Okahanja siding, the effect being that ore will thereafter be railed in bulk to Walvis Bay. This eliminates the need to rail empty containers to the load siding, takes out any potential demurrage charges associated with any rail delays or other breakdowns at the loading siding and will allow for continuous filling of containers at Walvis Bay and a much more rapid turnaround of bulk rail cars from the siding. This is a significant step in the eventual change to bulk shipment as opposed to containerised, with important cost and efficiency benefits. Further trading updates will follow as these are made available to Premier."

 

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 19% interest in MN Holdings Limited, the owner and operator of the Otjozondu Manganese Mining Project in Namibia.

 

Glossary

 

 

"lump ore"

Mine size specification 80% plus 10 mm/minus 100 mm.

 "Mn"

Manganese.

"Ton"

Metric ton.  

 

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.

 

ENDS


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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