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.
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.