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Premier African Minerals still mulling options for RHA

Re-opening the mine requires a settlement of the issue of ownership

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Tungsten price has rallied strongly

Premier African Minerals PLC (LON:PREM) has identified four alternatives to restart its RHA tungsten mine in Zimbabwe.

Engineers are now considering which of the options would involve the lowest capital cost and shortest timeframe.

READ: Premier African Minerals appoints interim ​chairman, updates investors on RHA mine

Re-opening the mine requires a settlement of the issue of ownership with the Zimbabwe government, the company added.

Premier has proposed shareholder loans be capitalised, which would take its stake to 90% from 49%.

If that can be agreed, Premier said the alternatives then available include finding a new partner, a spin-off of RHA or a new offtake deal.

Premier wrote off RHA fully in its latest accounts at a cost of US$9.8mln following the suspension of mining in January and uncertainty over ownership.

Elsewhere, Premier recently agreed for Cadence Minerals Plc (LON:KDNC) to fund the Definitive Feasibility Study at the Zulu lithium project, also in Zimbabwe.

Cadence can take up to 30% of Zulu by investing US$5.1mln in milestone payments.

Premier also estimates the value of its 5% stake in potash project developer Circum Minerals at US$6.2mln based on the last placing price.

Losses for the year to December were US$19.6mln including the RHA impairment.

Quick facts: Premier African Minerals Ltd

Price: 0.0732 GBX

Market: AIM
Market Cap: £13.02 m

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Upside for Zulu lithium project looks very exciting says Premier African's Roach

George Roach , Premier African Minerals PLC's (LON:PREM)  chief executive, explains why the accounts were delayed, prospects for the Zulu lithium project and the likely next steps at RHA. Roach says they've identified four alternatives to restart the RHA tungsten mine in...

on 27/7/18

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