Premier African Minerals Limited (LON:PREM) said the resolution of an indigenisation equity arrangement for RHA Tungsten Private Limited, in which it holds a 49% interest, has been delayed.
The miner said that it had been advised earlier this week by the Ministry of Industry, Commerce and Enterprise Development in Zimbabwe that its proposal to resolve the equity status at RHA would be tabled for a decision at a cabinet meeting that was held on 20 November.
However, the minutes of the meeting made no reference to the matter and the company had subsequently been told that it had not been discussed and would be presented instead at the next cabinet meeting scheduled for early next week.
George Roach, chief executive of Premier African, said: "Apart from the ongoing support we have received from the Minister of Mines, I personally met with the previous Minister of Industry Commerce and Enterprise Development on 4 July 2018 when I was told by the previous Minister that this matter required only a sign off from the President, which was expected within days. Others on our team have received a number of assurances and timelines for conclusion of this process over the past months."
He added: “Our board has urged that Premier wait for an outcome from the anticipated cabinet meeting, and in the absence of a positive conclusion, first seek direct intervention from the President before proceeding with any other lawful alternative. It goes without saying as the matter approaches a year, that this delay is a long time in the life of an unemployed miner and an expectant Premier shareholder."
Shares were down 11% at 0.12p.