Premier African Minerals Limited RHA Update (6242X)
13 August 2018 - 8:50PM
UK Regulatory
TIDMPREM
RNS Number : 6242X
Premier African Minerals Limited
13 August 2018
Premier African Minerals Limited / Ticker: PREM / Index: AIM /
Sector: Mining
For immediate release
13 August 2018
Premier African Minerals Limited
RHA Update
Premier African Minerals Limited ("Premier" or the "Company"),
the AIM-traded, multi-commodity mining and natural resource
development company, is pleased to provide an update on the status
of the proposed restructuring of RHA Tungsten Private Limited, the
owner of RHA Tungsten Mine ("RHA") in Zimbabwe in which Premier
currently has a 49% interest.
The Company has already received written confirmation from the
Ministry of Mines and Mining Development (the "Ministry of Mines")
that under the amended Indigenisation and Economic Empowerment Act,
RHA is no longer required to comply with indigenisation policies
and that the proposed restructuring of RHA can proceed without
approval from the Ministry of Mines.
In further response to our proposal that Premier's loan account
in RHA be capitalised in exchange for the issue of additional
shares in RHA, such that Premier would thereafter hold 90% of the
shares in issue in RHA, the Company has received a letter dated 9
August 2018 from the Ministry of Industry, Commerce and Enterprise
Development of Zimbabwe (the "Ministry"), which has responsibility
for indigenisation, confirming inter alia that:
-- Premier's proposal as set out above has been favourably
received by the relevant Ministry and relevant stakeholders;
and
-- Progress has been made and our continued support has been requested by the Ministries.
As the RHA shares in question are part-owned by the Government,
any disposal of these shares in relation to the restructuring and
recapitalisation of RHA will be guided by relevant legislation,
regulation and directives. In light of the reassurances received
from the Ministries, Premier will continue to work with the
Ministries while the procedural Governmental approvals are dealt
with.
George Roach, CEO of Premier, stated: "I would like to express
my appreciation to the Ministries for their assurances and positive
responses, which show their clear commitment to dealing with this
process. RHA is a near fully developed mine and with a resolution
to the equity situation in sight, and the recent firming of
tungsten prices, has the potential to be back in production.
Based on the reassurances by the Ministries, Premier will report
on the finding of the independent review to bring RHA back into
production in the coming weeks and look to conclude one of the
various funding options as previously announced on 20 July 2018.
Simultaneous with this, Premier is also reviewing bulk tests
concluded on historic tailings in 2016 based on the much-improved
tungsten prices, with a view to possible mitigation of peak funding
requirements to get RHA operational."
This announcement contains inside information for the purposes
of Article 7 of EU Regulation 596/2014. The person who arranged the
release of this announcement on behalf of the Company was George
Roach.
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
--------------------------- ---------------------
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 RHA and Zulu projects 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 a number of mineral assets in Europe and
Africa.
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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