Chronicle Editor
Oliver Kazunga, Acting Business Editor
AIM-listed Premier African Minerals says it is in discussions with the National Indigenisation and Economic Empowerment Board (NIEEB) to agree on alternative financing options for the cash-strapped RHA Tungsten mining project in Kamativi.
NIEEB, a partner of Premier African Resources in the RHA Tungsten mining project, owns 51 percent shareholding.
In a statement yesterday, Premier African Minerals said it would suspend production until such time as a commercial and viable agreement is reached with NIEEB to ensure long-term future for RHA.
“New policy statements in Zimbabwe enable 100 percent foreign ownership of mining projects (outside the diamond and platinum sectors). Premier is in discussions with the NIEEB, which has an interest of 51 percent in RHA, to agree alternative financing options,” said the mining group.
Premier exclusively owns 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.
“RHA will complete one final shipment before mid-January and will then suspend production until such time as a commercial and viable agreement is reached with NIEEB.
“Premier will continue to incur minimal ongoing care and maintenance costs in relation to RHA while the position is resolved,” said the mining group.
It said continuing operations at RHA were now dependent on additional sources of capital being provided.
“Further to the announcement on January 2, 2018, Premier advises that while plant throughput during the latter part of December 2017 exceeded the target of 6 000 tonnes in aggregate ore feed, the ore processed was largely from on-strike development at a diluted ore grade insufficient to achieve planned profitable production.
“RHA mine management has advised that development to expose stopes has lagged and mining of undiluted ore from stopes will now only be possible from the latter part of first quarter and accordingly, RHA requires additional financial support until this time.”
Premier, which also owns Zulu lithium project near Fort Rixon in Matabeleland South, has announced plans to list the mine separately in London.
It said the listing is intended to take place as soon as possible subject to regulatory and other approvals.
“Over the past 18 months, Premier has made significant progress in the development of the Zulu Lithium project and given the market valuations for comparable hard-rock lithium projects, the board believes that significant value can be unlocked for shareholders by having a separate listing for Zulu,” it said.
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