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Premier African Minerals says Zimbabwean government has proposed US$6mln investment in RHA mine

The spending would be used for immediate recommissioning of mining operations, subject to appropriate agreements

Tungsten
The company will provide further updates once the agreements have been signed

Premier African Minerals Ltd (LON:PREM) shares rose on Wednesday after it said the Zimbabwean government has proposed a US$6mln investment in the RHA tungsten mine.

The Zimbabwean Minister of Industry, Commerce and Enterprise Development sent a letter to the mining group on Tuesday about the funds it was willing to invest to resuscitate the mine.

READ: Premier African Minerals says Zimbabwean Government has indicated it is willing to inject funds required to resuscitate the RHA tungsten mine

The spending would be used for immediate recommissioning of mining operations, subject to appropriate agreements.

Zimdiv Holdings Limited, which is a wholly-owned subsidiary of Premier and which manages the RHA Mine, will be also awarded another management agreement on similar terms to the current one entered into in September 2013.

“The company will provide further updates once the agreements have been signed,” Premier African said.

In December, Premier said that it had been informed by the Zimbabwean government that it was willing to inject spending into the mine but had asked for further clarification on the history of the company’s involvement and the restructuring of RHA Tungsten Pvt Limited.

In afternoon trading, shares in Premier African were 5.9% higher at 0.85p.

Quick facts: Premier African Minerals Ltd

Price: 0.0925 GBX

AIM:PREM
Market: AIM
Market Cap: £10.42 m
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