Premier African Mineral PLC (LON:PREM) has been notified that a decision over the ownership structure of the RHA tungsten mine in Zimbabwe will not come until the end of the month.
Premier owns 49% of RHA but has proposed a debt-for-equity swap with Zimbabwe’s indigenisation authority NIEFF to take its stake up to 90%. The Ministry of Industry, Commerce and Enterprise Development in Zimbabwe has indicated that the process will be concluded before the end of this month.
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George Roach, Premier’ chief executive, said: "I am on record that there would be some advancement by the end of last week with this proposed restructure of the equity at RHA, or Premier would need to look to other legal processes to secure the remaining equity in RHA.
“It is simply not possible that Premier, or any other could be expected to continue to fund the ongoing holding costs and the return to production with a minority stake and no contribution from the remaining shareholders.
"The cost to RHA employees, many of whom have received no income this year, the cost to a body of international shareholders and the loss of potential revenue must end now. “
Roach added that it will not be possible to re-start production at RHA until the proper legal process is concluded.