Premier African Minerals Limited (LON:PREM) secured an improved offtake deal for tungsten from its RHA project in Zimbabwe and appointed a new chief operating officer as it moves towards commercial production.
Premier will supply the first 4,100 metric tonnes to Noble Resources over an anticipated two years on favourable pricing terms, it said.
Chief executive George Roach said it was as much a statement of confidence in RHA as an indication of improving demand and prices for wolframite concentrates.
Progress at RHA has been good in certain aspects but slower in others, said Roach, highlighing delays in completing shaft upgrades (now scheduled to finish at the end of January)
Anthony John Michalec ahas been hired as chief operating officer- a non board role.
He has over 35 years of experience in mining engineering gained at open pit and underground operations across Africa with companies like Shanta Gold and First Quantum Minerals.
For processing, Premier has chosen to own its own sorter rather than operate on a toll basis.
The XRT sorter is now planned to be commissioned during the first quarter of 2017.
"When this is installed and commissioned, and all other upgrades completed, RHA projects expenditure on an EBITDA basis to reduce to approximately US$682,000 per month from the US$825,000 originally estimated (as previously announced on 5 October 2016)."
In addition, the group said it had subscribed for a further loan notes under its agreement with Darwin.
These have a gross value of £550,000 which will be used for the development of the RHA mine as well as general working capital purposes. Darwin will be issued with 44,000,000 warrants at 0.0375 pence per warrants .
Shares fell 8.33% to stand at 0.275p.