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Business Reporter
AIM-listed Premier African Minerals has secured a $300 000 loan expected to provide additional working capital as the company anticipates concluding negotiations on its Zulu Lithium and RHA tungsten projects in Zimbabwe soon.
In a statement, the multi-commodity mining and resource development company, said the loan agreement was entered into with a company owned by a trust of which Premier African Minerals chief executive officer Mr George Roach is a beneficiary.
“The loan will provide additional general working capital while the company looks to bring finality to the negotiations under way at the Zulu Lithium and RHA tungsten projects in Zimbabwe,” it said.
“The Company has agreed not to draw down against any equity or equity linked financing facilities until such time as the loan has been repaid.”
Premier has a diverse portfolio of projects, which include tungsten, rare-earth elements, lithium and tantalum in Zimbabwe. In 2016 the company announced that it had received encouraging results from its 2 500 metre drilling programme at the Zulu lithium project in Fort Rixon. The first diamond core hole intersected 9,5 metres of visual spodumene petalite lithium mineralisation, from a down hole depth of 10,5 m. The drilling programme is designed to establish maiden resources.
Mr Roach is on record saying their next drilling programme would seek to expand the wide intersections and further define the high-grade core.
“This is expected to result in an elevated level of confidence in the resource and the ability to move rapidly to a definitive study based on a mining plan optimised to take advantage of this tightly confined and relatively shallow high-grade core of spodumene,” he said.
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