Premier African Minerals Limited RHA Update (8874P)
November 23 2016 - 1:05AM
UK Regulatory
TIDMPREM
RNS Number : 8874P
Premier African Minerals Limited
23 November 2016
Premier African Minerals Limited / Ticker: PREM / Index: AIM /
Sector: Mining
For immediate release
23 November 2016
Premier African Minerals Limited
("Premier" or the "Company")
RHA Update
Premier African Minerals Limited, the AIM-traded,
multi-commodity resource and development Company focused on
Southern and Western Africa, is pleased to announce that the
Company has appointed African Mining and Exploration ("Afmine" or
"Contractor") to be the principal mining contractor for the
upgrades, development of the underground operations and
reestablishment of open pit mining at the RHA Tungsten Mine (RHA)
in Zimbabwe.
Mining Targets:
-- To achieve 16,000 tonne per month from underground operations
and to deliver not less than 12,000 tonne of ore to the ROM pad
George Roach, CEO, commented:
"The development of RHA is progressing well and the Afmine team
successfully mobilised and commenced works on site. Afmine has a
reputation for safety and efficiency and, inter alia is contracted
to some of the major mining houses within Zimbabwe. At the same
time, negotiations for phase two are well advanced with the
essential requirement being the delivery of up to 28,000 tonnes but
not less than 23,000 tonnes per month from the open pit. It is
particularly gratifying to see the commitment from all contractors
and staff to the mine during this period leading to installation of
the XRT sorter and recommencement of operations."
Mining Contract
The mining contract ("Contract") consists of two phases. The
first phase is for an initial 14 weeks, during which Afmine shall
attend to rehabilitation works in the underground and prepare for
open pit operations. The second phase will be subject to further
agreement for a longer term contract but entirely dependent of
meeting deliverables agreed in the initial phase, and acceptable
pricing.
The Contract requires payment of a one-off mobilisation cost of
US$50,000. Thereafter two milestone payments each amounting to
US$75,000 and are due when the agreed milestones are met. Premier
has granted discretionary conversion rights for five days starting
from the date of completion to convert the two milestone payments
into shares of no par value. The Contract is structured to ensure
the delivery of a minimum of 12,000 tonnes at a fixed cost per
tonne. Any delivery beyond such 12,000 tonnes of mined material
shall be at an incremental rate per tonne, with the motivation
being to reduce the final processed cost per tonne.
About Afmine
Afmine is a leading mining and exploration services company
operating in Zimbabwe which handles over 400 kilotons of ore on a
monthly basis. The Company specialises in both underground mining
and specialised haulage solutions and has a good reputation for
safety and efficiency. Afmine has worked for major projects and its
clients include ASA Resources Limited (Freda Rebecca Gold Mine and
Bindura Nickel Corporation) and Metallon Gold (Private) Limited
(Shamva Gold Mine).
For more information of Afmine, please visit www.afmine.com.
This announcement contains inside information for the purposes
of Article 7 of EU Regulation 596/2014.
Enquiries
Premier African Minerals Tel: +44 (0)7734
Fuad Sillem Limited 922074
------------------ --------------------------- ------------------
Michael Cornish Beaumont Cornish Tel: +44 (0) 207
/ Roland Cornish Limited 628 3396
(Nominated Adviser)
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Jerry Keen/Edward Shore Capital Stockbrokers Tel: +44 (0) 207
Mansfield Limited 408 4090
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Charles Goodwin/
Harriet Jackson/ Yellow Jersey PR Tel: +44 (0) 7747
Clare Glynn Limited 788 221
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Notes
Premier African Minerals Limited (AIM: PREM) is a
multi-commodity mining and natural resource development company
focused in Southern and Western Africa with production started at
its flagship RHA project in Zimbabwe.
The Company has a diverse portfolio of projects, which include
tungsten, rare earth elements, gold, lithium and tantalum in
Zimbabwe and Benin, encompassing brownfield projects with near-term
production potential to grass-roots exploration. The Company
recently acquired a 52% controlling stake in Mozambique-based TCT
Industrias Florestais Limitada, which owns a substantial limestone
deposit and forestry business located on rail in the Sofala
Province of Mozambique. In addition, The Company holds 2 million
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. At present those shares are valued at US$4
million based on the latest price at which Circum has accepted
subscriptions. Premier also has a 4.5% interest in Casa Mining
Limited, a privately-owned exploration company that has a 71.25%
interest in the 1.2 million ounce inferred resource Akyanga gold
deposit in the DRC.
ENDS
This information is provided by RNS
The company news service from the London Stock Exchange
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November 23, 2016 02:05 ET (07:05 GMT)