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viewPremier African Minerals Ltd

Premier African Minerals clears debts and looks to rebuild

Snapshot

  • Owns 49% of RHA tungsten mine in Zimbabwe
  • Agreement reached for funding for production re-start
  • Has 19% stake in Namibian manganese mine owner 
Wolframite

Quick facts: Premier African Minerals Ltd

Price: 0.0402 GBX

AIM:PREM
Market: AIM
Market Cap: £7.47 m
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What Premier African Minerals owns

RHA

Tungsten deposit RHA is situated in an area of historic production, approximately 270km northwest of Bulawayo.

Premier African has announced a resource of 22.1mln tonnes at 2.45kg per tonne in both the underground and open-pit operations.

To date, Premier African Minerals has invested around US$18mln in the acquisition and development of the mine.

MNH

MN Holdings operates the producing Otjozundu manganese mine in Namibia.

Premier has upped its stake in MNH to 19% from the 10% it bought in December. 

Neil Herbert, MNH's chairman, has joined the Premier board. He is also currently chairman of IronRidge Resources, Helium One and Siderian Resource Capital.

The Otjozondu mine has increased exporting levels to up to 10,000 tonnes lump ore per month at better than 35%, up from 5,000 per month late last year.

Zulu Lithium 

Situated 80km from Bulawayo in Zimbabwe, Premier believes the project is potentially the largest undeveloped lithium-bearing pegmatite in Zimbabwe.

A scoping study indicated a value of US$127mln for a 15-year open cast operation mining a concentrate of spodumene and petalite.

Elsewhere

In July, Premier African Minerals Ltd (LON:PREM) struck a deal to acquire hard-rock lithium assets in Zimbabwe and Mozambique.

The deal with Lithium Consolidated Ltd, which is switching focus to Australian assets, saw  Premier pay A$150,000 gross consideration in shares.

Circum

Premier African owns just over 5mln shares in the privately-owned natural resources group, which is developing its wholly-owned Danakil Potash project in Northern Ethiopia.

The Danakil Project has the potential to be a world-class potash project says Premier.

Finances

In October, Premier added it was debt-free and “well-funded for the immediate future” as it had settled all outstanding amounts owing to directors, employees and other creditors.

A day after raising £1.1mln through a placing, the company said it issued £600,000 worth of new shares to repay accrued but unpaid contractual amounts and outstanding loans.

What does the chief executive say? George Roach

“Together with the cost reductions achieved over the past few years, we are also a much more efficient company with reduced overheads and able to focus on the future from a position of improved financial strength.”

Premier African is assessing exploration opportunities in more than one African jurisdiction, he added and said that initial exploration on its tenement in Mozambique is now able to proceed, while other new tenement applications in Mozambique are underway.

Video

Inflexion points

  • Re-start of mining at the tungsten mine 
  • Exclusive prospecting order (EPO) issued at Zulu
  • Sale of stake in Circum
  • Revenues from MNH

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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

3 min read