Aim-listed multicommodity mining and natural resources development company Premier African Minerals has announced a placement to raise £750 000 needed to supplement working capital for its RHA Tungsten mine, in Zimbabwe.
The placement will also in part be to support costs associated with the restructuring and ongoing holding costs of the mine, which remain vital to bringing RHA back into production expeditiously.
This placement will see Premier fully funded in regard to working capital until December this year, without any dependency on revenue generated from a possible early return to production at RHA, targeted at 6 000 t/m.
As Premier further looks to derisk development at RHA, the company will start mobilising the driller with the aim of starting a drilling programme of up to 2 750 m as soon as possible with the objective of expanding the resource base as well as increasing the confidence levels of the openpit and underground resources.
In addition, the company and its technical consultants are finalising an assessment of the wolframite resources contained in the tailings facility of RHA. Premier expects to publish an updated technical report shortly.
Premier CEO George Roach notes that the placement gives Premier “a head start at RHA and provides the working capital necessary for the group as a whole”.
“Being able to get the additional drilling started immediately at RHA is likely to add further value to the mine and will guide efficient and effective back-to-production strategies, with the Zulu lithium and tantalum project nearing the completion of the due diligence period,” he states.
The company also provided an update of the proposed restructuring of RHA Tungsten mine in which Premier now has a 49% interest.
With RHA no longer being required to comply with indigenisation policies, the proposed restructuring of RHA can proceed without approval from the Ministry of Mines.
As the RHA shares are part-owned by government, any disposal of these shares in relation to the restructuring and recapitalisation of RHA will be guided by legislation, and work with the Ministries.
Roach expresses his appreciation to the Ministries for their assurances and positive responses, which he suggests “show their clear commitment to dealing with the 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,” Roach comments.
He further states that the company has re-examined its bulk test on historic tailings at RHA and feels confident that, with the improved tungsten prices at present, the company is able to expedite the reopening of operations using tailings as a supplement ore feed.