Premier African Minerals Limited RHA Investment and Management Agreement (1211Y)
07 Mayo 2019 - 1:01AM
UK Regulatory
TIDMPREM
RNS Number : 1211Y
Premier African Minerals Limited
07 May 2019
Premier African Minerals Limited / Ticker: PREM / Index: AIM /
Sector: Mining
For immediate release
7 May 2019
Premier African Minerals Limited
Completion of RHA Investment and Management Agreement
Premier African Minerals Limited ("Premier" or the "Company") is
pleased to report the signing of a new Management Agreement ("MA")
with the National Indigenization and Economic Empowerment Fund of
Zimbabwe ("NIEEF") that is expected to see RHA Tungsten Private
Limited ("RHA") brought back into production without any further
financing requirement from Premier. Premier holds a 49% interest in
RHA and is the operator.
George Roach, CEO of Premier commented: "Whilst it has been a
long haul, I am very pleased to be able to report that we have
signed a new legally binding agreement with NIEEF that includes a
funding undertaking of US$6 million for RHA. Use and application of
these funds is expected to see RHA back in production later this
year and allows for required upgrades that are expected to result
in major operating cost reductions including electricity grid
connection. Premier retains ownership of the plant and equipment
and is reappointed as the manager for a further 5 years with
renewal thereafter.
The investment from NIEEF will be structured as share capital
and Premier will simultaneously capitalise an equivalent amount
from Premier's existing loan account. In my opinion, this
represents both an equitable solution and a good time for the
Zimbabwean Government to invest directly in this project. RHA has
been significantly de-risked over the past 4 years and is now an
operation that is better understood.
We have agreed a provisional implementation process with NIEEF
and I expect to provide further guidance thereafter."
Key terms of the Management Agreement
The new MA replaces the old Management Agreement that had been
entered into on the 23 September 2013. Premier's 100% owned
subsidiary ZimDiv Holdings Limited is appointed as the Manager for
a period of 5 years. In particular, the Manager has full authority
and responsibility for the day to day operations of RHA.
The Manager will conduct the operations at RHA in accordance
with the general terms and conditions of the MA and the approved
budget and shall report directly to the board of RHA. The board of
RHA will agree the Management Fee that will include a performance
related adjustment, which requires first concentrate shipment
within 100 days of receipt of the new investment.
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
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Jerry Keen/Edward Shore Capital Stockbrokers Tel: +44 (0) 20 7408
Mansfield Limited 4090
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Tom Curran/Elliot Tel: +44 (0) 20 3700
Hance SVS Securities Limited 0100
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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 Tungsten and Zulu Lithium
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.
Forward Looking Statements:
Certain statements in this announcement are, or may be deemed to
be forward looking statements. Forward looking statements are
identi ed by their use of terms and phrases such as "believe"
"could" "should" "envisage" "estimate" "intend" "may" "plan" "will"
or the negative of those variations or comparable expressions
including references to assumptions. These forward-looking
statements are not based on historical facts but rather on the
Directors' current expectations and assumptions regarding the
Company's future growth results of operations performance future
capital and other expenditures (including the amount. nature and
sources of funding thereof) competitive advantages business
prospects and opportunities. Such forward looking statements re ect
the Directors' current beliefs and assumptions and are based on
information currently available to the Directors. A number of
factors could cause actual results to differ materially from the
results discussed in the forward-looking statements including risks
associated with vulnerability to general economic and business
conditions competition environmental and other regulatory changes
actions by governmental authorities the availability of capital
markets reliance on key personnel uninsured and underinsured losses
and other factors many of which are beyond the control of the
Company. Although any forward-looking statements contained in this
announcement are based upon what the Directors believe to be
reasonable assumptions. The Company cannot assure investors that
actual results will be consistent with such forward looking
statements.
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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