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Premier African Minerals says RHA funding deal has been signed

The agreement includes a US$6mln funding commitment for RHA from the Zimbabwe government.

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RHA is in Zimbabwe

Premier African Minerals PLC (LON:PREM) has signed an agreement with Zimbabwe’s indigenisation agency [NIEFF] that will see the RHA tungsten mine re-open without any additional funding from the miner.

The agreement includes a US$6mln funding commitment for RHA from the Zimbabwe government.

WATCH: Premier African's George Roach welcomes RHA funding deal

George Roach, chief executive, said the US$6mln of funding is expected to see RHA back in production later this year and allows for upgrades that will see major operating cost reductions.

A provisional implementation process had been agreed with NIEEF, he added.

Premier retains ownership of the plant and equipment at the mine and is reappointed as the manager for a further five years.

“The investment from NIEEF will be structured as share capital and Premier will simultaneously capitalise an equivalent amount from Premier's existing loan account.

“In my opinion, this represents both an equitable solution and a good time for the Zimbabwean Government to invest directly in this project.“

Premier holds a 49% interest in RHA and is the operator.

Quick facts: Premier African Minerals Ltd

Price: 0.1668 GBX

AIM:PREM
Market: AIM
Market Cap: £18.18 m
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Watch

Premier African CEO would be disappointed if RHA not producing this year

George Roach, Premier African Minerals PLC’s (LON:PREM) chief executive remain confident that the US$6mln earmarked by the Zimbabwe government to re-start the RHA tungsten mine will be forthcoming. Once the money comes through he is confident RHA can be back in operation within 100...

on 7/6/19

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