Premier African Minerals Limited (“Premier” or the “Company”), the AIM-traded, multi-commodity mining and natural resource development company, is pleased to provide an update on the status of the proposed restructuring of RHA Tungsten Private Limited, the owner of RHA Tungsten Mine (“RHA”) in Zimbabwe in which Premier currently has a 49% interest.
The Company has already received written confirmation from the Ministry of Mines and Mining Development (the “Ministry of Mines”) that under the amended Indigenisation and Economic Empowerment Act, RHA is no longer required to comply with indigenisation policies and that the proposed restructuring of RHA can proceed without approval from the Ministry of Mines.
In further response to our proposal that Premier’s loan account in RHA be capitalised in exchange for the issue of additional shares in RHA, such that Premier would thereafter hold 90% of the shares in issue in RHA, the Company has received a letter dated 9 August 2018 from the Ministry of Industry, Commerce and Enterprise Development of Zimbabwe (the “Ministry”), which has responsibility for indigenisation, confirming inter alia that:
· Premier’s proposal as set out above has been favourably received by the relevant Ministry and relevant stakeholders; and
· Progress has been made and our continued support has been requested by the Ministries.
As the RHA shares in question are part-owned by the Government, any disposal of these shares in relation to the restructuring and recapitalisation of RHA will be guided by relevant legislation, regulation and directives. In light of the reassurances received from the Ministries, Premier will continue to work with the Ministries while the procedural Governmental approvals are dealt with.
George Roach, CEO of Premier, stated: “I would like to express my appreciation to the Ministries for their assurances and positive responses, which show their clear commitment to dealing with this process. RHA is a near fully developed mine and with a resolution to the equity situation in sight, and the recent firming of tungsten prices, has the potential to be back in production.
Based on the reassurances by the Ministries, Premier will report on the finding of the independent review to bring RHA back into production in the coming weeks and look to conclude one of the various funding options as previously announced on 20 July 2018. Simultaneous with this, Premier is also reviewing bulk tests concluded on historic tailings in 2016 based on the much-improved tungsten prices, with a view to possible mitigation of peak funding requirements to get RHA operational.”
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