Premier African Minerals Limited (LON:PREM) shares shot higher mid-morning on Christmas Eve after the group said it has been informed that the Zimbabwean Government is willing to inject the funds required to resuscitate the RHA tungsten mine.
In a statement, the AIM-listed firm said the indication was made in a letter received on the afternoon of 21 December 2018 from the Zimbabwean Minister of Industry, Commerce and Enterprise Development which asked for some further clarification on the history of Premier's involvement and the restructuring of RHA Tungsten Pvt Limited.
George Roach, Premier's CEO, commented; "We are pleased to have received a substantive response from the new Minister to our proposal originally submitted in January 2018.
“The Minster has raised a number of issues, most already dealt with historically and notes that the management contract will need to be renegotiated. As indicated in the letter, the Minister looks forward to discussing the matter further.
“Our formal response to the Minister will suggest that I am ready to meet the Minister at any time that the Minister finds convenient.”
He concluded: “I look forward to progressing the Newco/KME transaction and bringing the RHA status back to production as soon as possible in 2019.”
In mid-morning trading, Premier African shares were 15% higher at 0.115p.