Extensive Zimbabwe portfolio…
Premier African Minerals Ltd (LON:PREM) has five projects in Zimbabwe, the producing RHA tungsten mine, the Katete rare earths project, the Zulu lithium project, the Tinde fluorspar project and the Lubimbi xenotime project.
Of these, RHA and Zulu have been at the fore of Premier African’s recent efforts, although lately there has been something of a hiatus at RHA as it requires further funding and Premier is now negotiating about the indigenization conditions.
At Zulu though, continuing intercepts of high grade lithium have now taken Premier to the point where it is now planning to list it into a new vehicle. Highlights from the latest drill results include 3.8 metres at 1.70% LiO2, 5.55 metres at 1.13% LiO2, and 6.29 metres at 1.04% LiO2.
… complemented by assets in Togo, Benin and Mozambique
In Togo Premier African has the Pagala zinc project, the Haito nickel project, the Kara- Niamtougou uranium project and the Dapaong gold project. In Mozambique Premier African holds the Catapu limestone project, and in Benin it holds the Benin Speciality Minerals project, which is prospective for tantalum, tourmaline and aquamarine.
Investment portfolio adds value
Premier African also holds investments in two companies with assets in Africa. The first is Circum Minerals Ltd, which owns the Danakil potash project in Ethiopia. The second is a stake in Casa Mining Ltd, a privately-owned exploration company that has a 71.25% interest in the 1.5mln ounce Akyanga gold project in the Democratic Republic of Congo.
Chief executive George Roach upbeat on Zulu, cautiously optimistic on a deal for RHA
“Even though we made significant progress at RHA during the last quarter of 2017, the mine did not meet the guidance of profitable production during fourth quarter, 2017,” said chief executive George Roach.
“Premier has previously stated that unless RHA traded profitably during December 2017, Premier would not provide further financial support to RHA. Accordingly, Premier is immediately approaching our 51% partner in RHA to assist in facilitating a long-term solution for RHA.”
Part of the issue, suggests Roach, is that while Premier is the sole funder for RHA, its ownership only amounts to 49% under indigenization laws, and that’s making it harder for Premier to generate a return on what might otherwise be a profitable investment.
Talks are ongoing though, and with a new regime in place that’s apparently more friendly to business, there are grounds for optimism.
Meanwhile, at Zulu, the picture is much clearer.
"Whilst Premier continues with discussions with several parties in regard to development of our Zulu asset, it is clear that we need to separate Zulu from Premier to see the real value in this asset unlocked and a proposed separate listing will be the first step in this process," says Roach.