Premier African Minerals Limited (LON:PREM) has taken a 10% stake in a manganese mine MN Holdings after converting a loan into shares.
MN owns the Otjozondu mine in Namibia, which is currently exporting 5,000 tonnes lump ore per month at better than 35% manganese with production set to increase, Premier said in a statement.
The mine also has an exploration target of 30-50mln tonnes grading at 23%-27% maganese and in the year to June generated revenues of N$21mln (US$1.43mln).
George Roach, Premier’s chief executive, said: “Otjozondu is a very well equipped owner-operator open pit mining contractor and this expertise has the potential to complement and reduce operating costs at RHA as soon as it is back in production and Zulu both during exploration and mining phases.”
Processing plant and mining equipment at Otjozondu were independently valued at approximately ZAR326min (US$22mln), Roach added.
Premier’s RHA tungsten and Zulu lithium projects are in Zimbabwe.