Mining group cuts liabilities by US$1,4m

Oliver Kazunga, Senior Business Reporter
ZIMBABWE-focused mining group, Premier African Minerals, has reduced its liabilities by US$1,4 million in the period after June 2020 as it seeks to boost mining operations including its tungsten and tantalum projects in Matabeleland.

In April this year, the company announced that it had entered into a secured

US$200 000 loan agreement and related subscription agreement aimed at augmenting working capital reserves.

Premier indicated in a latest report for six months to June 2020, that it recorded an operating loss of US$0,649 million but was committed to reducing debts as well as restricting capital expenditure to focus on acquiring cash generative assets.

The mining group, among its objectives, has resolved the Exclusive Prospecting Order granted at Zulu and tantalum project or RHA Tungsten equity and funding is resolved or seek a potential disposition of the above assets. The RHA Tungsten mining project is in Kamativi.

“It is important to note that in the period post-June 2020, Premier has significantly reduced its overall liabilities by US$1,4 million through a combination of debt conversion and other settlement agreements and this assists in positioning the company to achieve the objectives set above,” said the mining group.

Premier said the operating loss for the half year period under review was mainly due to the costs associated with maintaining the listing status, which is made up of administrative fees, retainers to advisors and essential Premier operational expenditure.

Recently, the group announced that it was in discussions with the National Indigenisation and Economic Empowerment Fund (NIEEF) to agree on alternative financing options.

NIEEF, a partner of Premier African Resources in the RHA Tungsten mining project, owns 51 percent shareholding.

Premier exclusively owns the plant and equipment at the Kamativi mining operation and the group has pointed out that the mineral claims were ceded as security under the plant rental agreement by RHA to Premier.

In Matabeleland South Province, the mining group also owns the Zulu lithium and tantalite project. – @okazunga.