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Premier African Minerals says trading to resume soon

3rd July 2017

By: Anine Kilian

Contributing Editor Online

     

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JOHANNESBURG (miningweekly.com) – Trading in Aim-listed multicommodity miner Premier African Minerals’ shares, which has been temporarily suspended, will resume presently.

The group’s trading was suspended under Aim rules after it failed to post its 2016 results within six months of the end of the reporting period.

In a statement released Monday, Premier explained that publication of the results had been delayed by technical complexities surrounding certain valuations – particularly the Darwin loan notes and the integration and consolidation of Mozambique-based TCT Industrias Florestais.

The Darwin loan notes have this year been fully converted, but the company still needs to formally provide a snapshot of the valuation, for the purposes of the 2016 results.

“We did not anticipate the complexities that would be associated with certain valuations required for audit purposes, nor [did we expect] a requirement for independent valuations of Darwin loan notes, particularly as these had all been converted shortly after December 31, 2016. We deeply regret this delay, which should be resolved in a matter of days,” said CEO George Roach.

RHA PROJECT
Meanwhile, providing a project update, Roach noted that development at the company’s RHA openpit tungsten mining operation, in Zimbabwe, has progressed to the point where Premier is able to identify and track grade from the pit, through the run-of-mine pad and into the plant.

“This is a most significant development and is a tribute to very substantial effort that has been made by our geological team and mining engineers. Equally pleasing is that grade in the pit in these identifiable areas is running at 1.9 kg/t, which is higher than the projected grade of 1.5 kg/t,” he said.

Meanwhile, certain issues had been identified during the optimisation phase, which were being attended to.
These include the need for minor upgrades to certain components to allow for continuous operation at the higher tonnages that are now possible, following the commissioning of an X-ray sorting system.

“RHA has been a drain on cash resources, but we continue to believe that this is at a turning point and we expect positive cash flows from this operation later in 2017."

ZULU LITHIUM
Premier’s Zulu lithium project, in Zimbabwe, has the potential to be a company-making asset, according to Roach, who noted that the options for unlocking value for the company and its shareholders included possible strategic partnerships or the possibility of a separate listing for Zulu Lithium.

Roach noted that metallurgical test results had been particularly pleasing, owing to the projected grades of concentrates that will be available, but also because of the very low iron content that offers additional markets.

“Ongoing drilling at Zulu has yielded most encouraging mineralisation in the core and we confidently await assay results in the expectation that this will expand the compliant resource and add substantially to our initial confidence in this deposit.”

CIRCUM
Private natural resource investment group Circum, in which Premier has a 2% stake, reported that its application for a mining licence for the Danakil potash project, in Ethiopia, has been approved by the Ethiopian Council of Ministers.

The mining agreement provides Circum exclusive access over the 4.9-billion tonnes of National Instrument 43-101-compliant potassium resource contained within the 365 km2 licence area for an initial period of 20 years, and is renewable indefinitely for additional ten-year periods, provided financial viability continues to be demonstrated.

The licence allows for the exploitation of potassium-bearing minerals, which exist at relatively shallow depths within the vast licence area.

Edited by Samantha Herbst
Creamer Media Deputy Editor

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