TIDMPREM
RNS Number : 3104V
Premier African Minerals Limited
20 July 2018
Premier African Minerals Limited / Ticker: PREM / Index: AIM /
Sector: Mining
For immediate release
20 July 2018
Premier African Minerals Limited
Board changes, Notice of AGM and Corporate Update
Premier African Minerals Limited (AIM: PREM), the London-quoted
mining and exploration company is pleased to announce the
appointment of Michael Foster as interim Chairman and notice of the
Annual General Meeting ("AGM").
Board changes - Appointment of Chairman
Premier is pleased to announce that Mr Michael Foster, a Senior
Non-Executive Director on the Board of Premier has been appointed
as Non-Executive Chairman of the Company with effect from 20 July
2018. Michael Foster will replace George Roach who remains as CEO
of Premier.
George Roach, CEO commented: "The separation of Chairman and CEO
roles is long overdue and is expected to enhance board oversight
and direction. Michael has a wealth of experience in management and
development of resource companies and I am appreciative that he has
agreed to work with me over the next 6 months that are critical to
realising the vast potential that Premier offers."
Michael Foster said: "I am delighted to have been appointed as
Chairman of Premier. My focus will be on strategic governance,
improving all aspects of board oversight and assisting management
meet targets and advance the Zulu Lithium Project as well the RHA
tungsten mine in Zimbabwe.
George Roach has assembled an excellent portfolio of assets over
the years and I believe that with the right approach and partners
significant value can be unlocked in the immediate future."
RHA Tungsten Project
In expectation of sign-off of the proposed RHA Tungsten Project
("RHA") equity restructuring by the Zimbabwean Government, the
Company has had RHA's management undertake an in-depth assessment
of alternatives to reopen RHA, and three options have been proposed
to the Board.
The first three original options are based on a limited drilling
programme ("Drill Programme") being completed. The Drill Programme
is broken down into two parts, the first part will include fifteen
50-meter boreholes to establish at what depth below the current pit
floor, previously predicted ore grades are likely to materialise,
and whether or not the open pit can be profitably brought back into
production. The second part comprises eight 250-meter boreholes to
confirm geological depth extensions which will guide the Board on
the decision as to either develop a new decline vehicle access for
high tonnage from the underground operations or maintain a lower
tonnage operation through depth extensions to the existing vertical
shaft.
In is further worth noting that the Price of Wolframite ("APT")
has increased steadily and at this time is at US$354 per mtu
(metric ton unit, being 10 kg of tungsten trioxide equivalent
contained in a concentrate). This substantial and sustained price
increase in the APT and the fact that RHA can brought back into
production at short notice has resulted in a potential fourth
option. These options are summarised below,
Option 1 Re-commence of existing underground operations at
6,000 tpm and maintain same mining rate for life
of mine. Four-month stope development will access
required tonnage at projected in situ grade of 7,1
kg per tonne WO .
Option 2 Combines Option 1 plus the construction of a new
decline shaft to allow vehicle access direct to the
underground operations and a substantial increase
in ore delivery to the plant at significantly reduced
mining cost.
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Option 3 Combines Option 1 with reopening of the open pit
and is the option most likely to see best use of
the XRT sorter, significant increases in throughput
and lowest capital expenditure.
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Option 4 Wolframite production could commence from as early
as the second month of mining and without any further
drilling as a result of the improved APT price.
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The Company has engaged an independent consultancy to review
Option 4 as this does not require the Drill Programme, and the
Company considers that it is in the best interests of the Company
and its shareholders if mining and processing operations are
restarted at RHA.
The Company is currently reviewing various funding options for
RHA which include a new off-take agreement with advance payment for
concentrate, zero cost drilling as an offset for the drilling
contract at Zulu Lithium (Pvt) Ltd, direct equity investment at
project level, spin-out into a new company of which Premier would
retain a "no cost" interest as well as possibly funding by Premier
if the APT price continues to escalate as has been the case to date
over the past 12 months.
Self-financing of RHA is the least preferred option and would
only be considered on the basis of either a rights issue or open
offer.
Annual Accounts
Work to complete the Company's annual report and accounts for
the year ended 31 December 2017 (the "Annual Accounts") is nearing
completion, and the Company expects to publish the Annual Accounts
no later than 27 July 2018.
Notice of AGM
Premier African Minerals Limited, ("Premier" or the "Company")
is pleased to announce that the Annual General Meeting ("AGM") of
the Company will be held at at the Pullman Brussels Centre Midi
Hotel, Place Victor Horta 1, Brussels 1060, Belgium on 9 August
2018 at 10:00 am (UTC+1).
The notice of the AGM ("Notice") and Form of Proxy is now
available for download on the Company's website at
www.premierafricanminerals.com.
Shareholders can review the Explanatory Notes to the proposed
resolutions to be proposed at the AGM as set out in Appendix 1 of
the Notice. In particular, the Notice sets out the Company's future
strategy:
Ø actively seek to finalise the equity ownership at RHA,
Ø complete the independent review of the RHA option as discussed
in the Chairman Statement,
Ø seek to finance RHA back to production through the preferred
means of either external debt, a joint venture, sale of equity at
project level or a funded take-off agreement,
Ø seek to conclude the due diligence process at Zulu and
implement the investment agreement with Cadence,
Ø look to enhance technical skills and add diversity at Board
level,
Ø not contemplate any further acquisitions that is not near-term
cash generative until both Zulu and RHA are funded,
Ø strictly limit any financing to necessary operating overheads,
and
Ø seek to avoid any form of structured convertible finance.
Webinar
The Company is hosting a webinar on Wednesday 25 July at 11:00
am (UTC+1) to discuss the proposed strategy as well as provide a
general corporate update. Please click on the following link to
register and join the webinar, https://zoom.us/s/139614727.
The Company will also stream the AGM by a webinar that will
allow direct access to the meeting from any internet linked
computer or smart device. Please click on the following link to
register and join the webinar, https://zoom.us/s/911429653.
Enquiries:
Premier African Minerals Tel: +44 (0)7734
Fuad Sillem Limited 922074
Michael Cornish / Beaumont Cornish Limited Tel: +44 (0) 20 7628
Roland Cornish (Nominated Adviser) 3396
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Jerry Keen/Edward Shore Capital Stockbrokers Tel: +44 (0) 20 7408
Mansfield Limited 4090
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Brandon Hill Capital Tel: +44 (0) 20 3463
Jonathan Evans Limited 5000
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Notes to Editors:
Premier African Minerals Limited (AIM: PREM) is a
multi-commodity mining and natural resource development company
focused on Southern Africa with its flagship RHA project in
Zimbabwe.
The Company has a diverse portfolio of projects, which include
tungsten, rare earth elements, lithium and tantalum in Zimbabwe,
encompassing brownfield projects with near-term production
potential to grass-roots exploration. In addition, the Company
holds 5,010,333 shares in Circum Minerals Limited ("Circum"), the
owners of the Danakil Potash Project in Ethiopia, which has the
potential to be a world class asset. Premier also has an interest
in Arc Minerals that has several mineral assets in Europe and
Africa.
Forward Looking Statements:
Certain statements in this announcement are or may be deemed to
be forward looking statements. Forward looking statements are
identi ed by their use of terms and phrases such as "believe"
"could" "should" "envisage" "estimate" "intend" "may" "plan" "will"
or the negative of those variations or comparable expressions
including references to assumptions. These forward-looking
statements are not based on historical facts but rather on the
Directors' current expectations and assumptions regarding the
Company's future growth results of operations performance future
capital and other expenditures (including the amount. nature and
sources of funding thereof) competitive advantages business
prospects and opportunities. Such forward looking statements re ect
the Directors' current beliefs and assumptions and are based on
information currently available to the Directors. Many factors
could cause actual results to differ materially from the results
discussed in the forward-looking statements including risks
associated with vulnerability to general economic and business
conditions competition environmental
and other regulatory changes actions by governmental authorities
the availability of capital markets reliance on key personnel
uninsured and underinsured losses and other factors many of which
are beyond the control of the Company. Although any forward-looking
statements contained in this announcement are based upon what the
Directors believe to be reasonable assumptions. The Company cannot
assure investors that actual results will be consistent with such
forward looking statements.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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