Premier African Minerals Limited (LON:PREM) has completed its loan to MN Holdings Limited, while its chairman Neil Herbert has also joined the board of the junior.
The money will enable MNH to expand capacity at the producing Otjozundu manganese mine in Namibia.
Herbert is well-connected in mining circles and as well as MNH is currently chairman of IronRidge Resources, Helium One and Siderian Resource Capital.
In July, Premier African and Cambrian agreed to make a secured loan of US$1.35mln to MNH.
Cambrian has provided US$350,000 in cash to MNH while Premier will issue shares to MNH for the remaining US$1mln at 0.045p.
George Roach, Premier’s chief executive, said: "I am pleased that we are at last able start implementing the board changes I have referred to recently and I look forward to working with Mr Herbert.
“The completion of this loan payment and the appointment of MNH's Chairman to Premier's board cements the establishment of a strategic relationship and firmly aligns the best mutual interest of both parties.
“As I have previously stated, it is essential to the future of our company that we find a means to move to being production and cash generative, rather than development oriented and dependent on placements and the need to raise finance."