Premier African Minerals (LON:PREM) has produced the first concentrates from its RHA tungsten mine in Zimbabwe.
Production so far has been coarse grades, which represent about 75% of expected production from RHA. Fines production is expected to start next week.
In January, Premier estimated the mine would generate net revenue of US$26mln over a 22 month life of mine with pre-tax cash flow of US$8.9mln.
George Roach, chief executive, commented: “I am delighted to be able to report the production of the first wolframite concentrates from the RHA Mine.
“Following achievement of this milestone on time, fine tuning and optimisation is ongoing and we look forward to achieving our next milestone of first shipments in the near future.”
Financier Darwin, meanwhile, has requested the company converts its outstanding £600,000 convertible loan notes into equity.
Roach said: “The conversion of the remaining portion of the loan notes held by Darwin from the first financing concluded in February 2015, now means that there are no outstanding February loan notes and no debt repayments required in respect of the Darwin loan notes issued in April 2015 until October 2015.”
Shares were 11% lower at 2.8p today.