Premier African Minerals Ltd (LON:PREM) has agreed to lend US$1.35mln to MN Holdings Ltd, the owner and operator of the Otjozondu manganese mining project in Namibia.
The coupon is 10%.
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"Otjozundu is a producing revenue generating manganese mine based in Namibia currently involved in an expansion programme,” said Premier African’s chief executive George Roach.
“The loan to Otjozundu will enable it to conclude the purchase of significant additional plant and equipment from the nearby Purity mine to allow Otjozundu to steadily increase production and revenues.”
Neil Herbert, the chairman of Otjozundu, and a man well-known in mining circles, has been appointed a consultant to Premier African.
“In due course, Premier intends to invite both Neil and Peter to join the Board of Premier,” added Roach.
“Premier must move from a company dependent on continuous funding through shareholder support to one that can be revenue producing and start to return value to shareholders.”
Discussions on the future of the Zimbabwe projects continues.