JOHANNESBURG (miningweekly.com) – Aim-listed Premier African Minerals chairperson and CEO George Roach on Monday agreed to provide a guarantee for any amounts owing under the proposed memorandum of agreement (MoA) with JR Goddard Contracting (JRG).
Under the MoA with JRG, which was the openpit mining contractor at RHA Tungsten, Premier would settled the $851 312 owing to JRG at a rate of $54 626 a month over a 20-month period.
Should Premier restart openpit mining operations through the direct engagement of JRG during the 20-month period, $247 000 would be recovered by way of equal monthly payments against JRG's mining certificates over the duration of the new agreement.
In light of this, Premier entered into a put option agreement with Circum Minerals, in which Roach would acquire Circum shares at $2 apiece in the event Premier failed to meet its obligations under the JRG memorandum, JRG exercised its rights under the surety against Roach, or Premier failed to find an alternative buyer for its Circum shares.