PREM Premier African Minerals Limited

TIDMPREM

RNS Number : 7549F

Premier African Minerals Limited

17 July 2019

Premier African Minerals Limited / Ticker: PREM / Index: AIM / Sector: Mining

For immediate release

17 July 2019

Premier African Minerals Limited

RHA Update

Premier African Minerals Limited ("Premier" or the "Company") is pleased to provide, following a meeting held yesterday with the National Indigenisation and Economic Empowerment Fund ("NIEEF"), the following update on the progress to recommission the operations at RHA Tungsten Pvt Ltd ("RHA") in which Premier has a 49% interest and is the operator.

Highlights

-- Order to electrify RHA has been given, ZESA has been requested to commence essential works immediately

-- Essential in-country repairs to commence immediately and plant upgrades to be both commissioned and ordered

   --    RHA is now considered a priority project for the Government of Zimbabwe 

George Roach, CEO commented: "We believe the value of the in-country funds provided by the Zimbabwe Government to support this project has still been generally misunderstood. For example, the Zimbabwe Electricity Supply Authority ("ZESA") has now quoted to electrify the mine at a price which is only approximately 30% greater in RTGS Dollars than the original quotation that was denominated in US$. And, approximately RTGS Dollars 1 million has the ability to discharge debts of RHA previously incurred in Zimbabwe of approximately US$ 1 million.

Whilst it is not certain that the funds provided to date will be sufficient to bring RHA back into production as planned, it is certain that the payment by RHA of local operating costs within Zimbabwe has not been seriously adversely affected by the funding in RTGS Dollars, particularly in regard to transactions involving state-owned entities. And on the basis that RHA will seek to delay a decision to construct the planned decline shaft, any shortfall of funds is expected to be further limited.

NIEEF have reaffirmed their commitment to provide additional RTGS Dollars based funding to the extent this is reasonably necessary to bring RHA back to production. Further updates will be provided in due course."

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 
                    ---------------------------  --------------------- 
 Jerry Keen/Edward   Shore Capital Stockbrokers   Tel: +44 (0) 20 7408 
  Mansfield                    Limited                            4090 
                    ---------------------------  --------------------- 
 

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.

ENDS

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END

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