Premier African Minerals Ltd (LON:PREM) has signed a cooperation agreement with MN Holding Ltd for the supply of mining and exploration machinery and for professional assistance with the optimization of the Premier's various mining and exploration operations.
"This is another step towards the revival of RHA Tungsten Private Ltd and apart from the reprocessing of tailings whilst we bring the underground development back to life, the dramatically reduced cost of operating a mining fleet arising from the association with MNH, will encourage a re-evaluation of the possible restarting of open pit operations as well,” said Premier African chief executive George Roach.
“I have now completed two site visits with the management of MNH and the complete route to locate the equipment and the route to Walvis Bay for future export has been surveyed and approved. In situ inspection of the tailings to be reprocessed has resulted in agreement on necessary equipment and MNH will now commence with mobilisation.”
Meanwhile, a five ton bulk sample of underground ore has now been cleared for shipment to undergo detailed test work leading up to the optimisation of the process.
The cooperation agreement will initially provide Premier with the following plant and equipment for use at RHA: a two cubic meter wheel loader, a 20-ton dump truck, a tractor with water bowser for dust suppression with alternate blade for road work, and a four-wheel drive tractor-loader-backhoe.
Separately, Premier African said that Regent Mercantile Holdings Ltd has agreed to a further extension to the repayment terms of the convertible loan note for US$350,000 entered into on the 21 June 2019.
The payment term has now been extended to 31 March 2020. The loan agreement will continue to be secured over 350,000 shares of Circum Minerals Ltd held by Premier.