JOHANNESBURG (miningweekly.com) – Premier African Minerals is in discussions with Zimbabwe’s National Indigenisation and Economic Development Fund (NIEEF), which has an interest of 51% in the RHA Tungsten mine, to agree alternative financing options for the cash-strapped operation.

Continuing operations at RHA are now dependent on additional sources of capital being provided; however, Premier has previously stated that it will not provide any further finance other than in the form of a bridging facility for concentrate ready for shipment.

“RHA will complete one final shipment before mid-January and will then suspend production until such time as a commercial and viable agreement is reached with the NIEEF to ensure a long-term future for RHA,” the company said in a statement.

This followed the delivery of ore to surface at a diluted grade, deviating from the resource grade, and the advisement from RHA mine management that development to expose stopes has lagged and that the mining of undiluted ore from stopes will now only be possible from the latter part of the first quarter.

RHA requires additional financial support until this time.

“Premier has been the sole funder of RHA to date, although it only has a 49% interest,” explained Premier CEO George Roach.

“The proposed new legislation in Zimbabwe will permit 100% foreign ownership [of mining operations] and Premier is, therefore, currently in discussions with the NIEEF, as well as other interested groups, to review alternative financing arrangements that will allow for further external funding for RHA,” he said.

However, the company remained confident that when RHA was equitably financed, the mine would have a sustainable future.

Meanwhile, Premier is also considering seeking a separate listing for the Zulu project to maximise the value of the project.

“Over the past 18 months, Premier has made significant progress in the development of the Zulu lithium project and given the market valuations for comparable hard-rock lithium projects, the board believes that significant value can be unlocked for shareholders by having a separate listing for Zulu,” Premier explained.