admin
RHA Tungsten, a subsidiary of Premier African Minerals Limited, has satisfied the country’s indigenisation requirements as it prepares to commence its tin mining operations in Zimbabwe early next year. Premier African Minerals Limited is an Alternative Investment Market-listed multi-commodity natural resource company with mineral projects located in Western and Southern Africa. In Zimbabwe RHA owns Premier’s RHA Tungsten Project in Kamativi.
Premier chief executive Mr George Roach said they had concluded an agreement with Government and operations would start early next year.
“In accordance with the indigenisation policy, the National Indigenisation and Economic Empowement Fund will hold 51 percent of the issued share capital of RHA. Significantly, Premier’s wholly owned subsidiary, ZimDiv Holdings Limited, which in turn controls the remaining equity in RHA, is appointed as the manager of the project for an initial five-year term,” Mr Roach said.
He said RHA would issue a number of ordinary shares of nil par value to NIEEF once it had obtained sufficient funds to enable it to develop and construct the Kamativi mine.
“RHA has been an indigenised Zimbabwean company since Premier Minerals first entered into a letter of intent described in our admission document, and the early completion of the agreements is indicative of the excellent relationship and mutual understanding that we have enjoyed with NIEEF for some time now.”
He said RHA was now responsible for its own funding and neither Premier nor NIEEF shall be under any obligation to contribute to its exploration and development costs.
“Premier will provide interim assistance for ongoing operations until alternative finance is in place,” he added.
National Indigenisation and Economic Empowerment Board chief executive Mr Wilson Gwatiringa confirmed the deal saying the mining company was compliant and willing to explore its mining business in Zimbabwe.
“We have concluded an indigenisation deal with Premier African Minerals and to us it is a welcome development,” he said.
Premier African Minerals Limited has a diverse portfolio of multi-commodity projects which includes tungsten, rare earth elements, gold, lithium, tantalum and uranium in Zimbabwe and Togo.
Its operations span from Brownfield projects with near-term production potential to grassroots exploration.
Premier’s Katete REE project in Zimbabwe also has the potential to be developed as an open pit mine. The project, which spans 3 750 hectares, has returned a peak result from trenching of 14,6 percent Total Rare Earth Oxide.
Online Reporter