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Premier African Minerals still mulling options for RHA

Re-opening the mine requires a settlement of the issue of ownership

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Tungsten price has rallied strongly

Premier African Minerals PLC (LON:PREM) has identified four alternatives to restart its RHA tungsten mine in Zimbabwe.

Engineers are now considering which of the options would involve the lowest capital cost and shortest timeframe.

READ: Premier African Minerals appoints interim ​chairman, updates investors on RHA mine

Re-opening the mine requires a settlement of the issue of ownership with the Zimbabwe government, the company added.

Premier has proposed shareholder loans be capitalised, which would take its stake to 90% from 49%.

If that can be agreed, Premier said the alternatives then available include finding a new partner, a spin-off of RHA or a new offtake deal.

Premier wrote off RHA fully in its latest accounts at a cost of US$9.8mln following the suspension of mining in January and uncertainty over ownership.

Elsewhere, Premier recently agreed for Cadence Minerals Plc (LON:KDNC) to fund the Definitive Feasibility Study at the Zulu lithium project, also in Zimbabwe.

Cadence can take up to 30% of Zulu by investing US$5.1mln in milestone payments.

Premier also estimates the value of its 5% stake in potash project developer Circum Minerals at US$6.2mln based on the last placing price.

Losses for the year to December were US$19.6mln including the RHA impairment.

Quick facts: Premier African Minerals Ltd

Price: 0.1225 GBX

AIM:PREM
Market: AIM
Market Cap: £13.48 m
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