Premier African Minerals Ltd (LON:PREM) told investors it has now hired a mining contractor for upgrade and development work at the RHA tungsten mine in Zimbabwe.
In a statement the AIM quoted group said African Mining and Exploration (Afmine) has been hired as principal and as such it would be responsible for upgrades, development of underground operations and the reestablishment of open pit mining.
At RHA the plan is to achieve a rate of 16,000 tonnes per month from underground, and no less than 12,000 tonnes of ore per month to the run-of-mine (ROM) pad.
Chief executive George Roach said: "The development of RHA is progressing well and the Afmine team successfully mobilised and commenced works on site.
“Afmine has a reputation for safety and efficiency and, inter alia is contracted to some of the major mining houses within Zimbabwe.”
Roach added that negotiations are well advanced for phase two, which would see the operation grow to a range between 28,000 to 23,000 tonnes per month from the open pit.
Separately, Premier African Minerals notified investors that that Darwin Strategic is exercising its option to convert loan notes amounting to US$250,000 into equity.