Corporate Update

RNS Number : 7183A

Premier African Minerals Limited

02 January 2018

 

Premier African Minerals Limited / Ticker: PREM / Index: AIM / Sector: Mining

For immediate release

2 January 2018

Premier African Minerals Limited

Corporate Update

RHA Tungsten

Premier advises that the preliminary findings from the management of RHA following the December operations show that RHA did not achieve its guidance of profitable production during December as announced on 29 September 2017. Mining and plant operations at RHA currently continue and following an in-depth assessment of the operations at RHA, Premier will provide a further update and revised guidance.

Zulu Lithium

The Board of Premier has decided that a separate listing should be sought for the Zulu Project. Over the past year Premier has made significant progress in the development of the Zulu Lithium Project. The Company declared a Maiden Mineral Inferred Resource Estimate of 20.6 million tonnes grading 1.06% Li₂O based on a 2,500 metres drilling programme on only 35% of the strike length of the Main Zone. In addition, the Company completed a positive metallurgical test-work study demonstrating a viable process route and Premier completed a Scoping Study demonstrating a robust project with strong economics for both the Concentrate Plant and the Lithium Carbonate Plant option. 

The current drilling programme continues to intersect wide and high-grade spodumene pegmatite mineralisation. Valuations for comparable hard-rock lithium projects exceed Premier's current market capitalisation and the Board believes significant value will be unlocked by having a separate listing for Zulu. Premier is in discussions with various drilling contractors to fund future drilling programmes at Zulu on an earn-in basis and accordingly, is not dependent on any substantial placement into this proposed new company.

George Roach, Premier's CEO, commented: "Even though we made significant progress at RHA during the last quarter of 2017, the mine did not meet the guidance of profitable production during Q4, 2017. Premier has previously stated that unless RHA traded profitably during December 2017, Premier would not provide further financial support to RHA. Accordingly, Premier is immediately approaching our 51% partner in RHA to assist in facilitating a long-term solution for RHA.

"Whilst Premier continues with discussions with several parties in regard to development of our Zulu asset, it is clear that we need to separate Zulu from Premier to see the real value in this asset unlocked and a proposed separate listing will be the first step in this process."

Enquiries:

Fuad Sillem	Premier African Minerals Limited	Tel: [phone]
Michael Cornish / Roland Cornish	Beaumont Cornish Limited (Nominated Adviser)	Tel: [phone]
Jerry Keen/Edward Mansfield	Shore Capital Stockbrokers Limited	Tel: [phone]
Jon Belliss	Beaufort Securities Limited	Tel: [phone]
Charles Goodwin/Harriet Jackson	Yellow Jersey PR Limited	Tel: [phone]

Notes to Editors:

Premier African Minerals Limited (AIM: PREM) is a multi-commodity mining and natural resource development company focused in Southern and Western Africa with production started at its flagship RHA project in Zimbabwe.

The Company has a diverse portfolio of projects, which include tungsten, rare earth elements, lithium and tantalum in Zimbabwe, encompassing brownfield projects with near-term production potential to grass-roots exploration. In addition, the Company holds 5,010,333 shares in Circum Minerals Limited ("Circum"), the owners of the Danakil Potash Project in Ethiopia, which has the potential to be a world class asset. At present those shares are valued at US$10.2 million based on the latest price at which Circum has accepted subscriptions. Premier also has an interest in Casa Mining Limited, a privately-owned exploration company that has a 71.25% interest in the 1.5 million ounce inferred resource Akyanga gold deposit in the DRC.

Forward Looking Statements:

Certain statements in this announcement are, or may be deemed to be forward looking statements. Forward looking statements are identified by their use of terms and phrases such as ''believe'' ''could'' "should" ''envisage'' ''estimate'' ''intend'' ''may'' ''plan'' ''will'' or the negative of those variations or comparable expressions including references to assumptions. These forward-looking statements are not based on historical facts but rather on the Directors' current expectations and assumptions regarding the Company's future growth results of operations performance future capital and other expenditures (including the amount. nature and sources of funding thereof) competitive advantages business prospects and opportunities. Such forward looking statements reflect the Directors' current beliefs and assumptions and are based on information currently available to the Directors.  A number of factors could cause actual results to differ materially from the results discussed in the forward-looking statements including risks associated with vulnerability to general economic and business conditions competition environmental and other regulatory changes actions by governmental authorities the availability of capital markets reliance on key personnel uninsured and underinsured losses and other factors many of which are beyond the control of the Company. Although any forward-looking statements contained in this announcement are based upon what the Directors believe to be reasonable assumptions. The Company cannot assure investors that actual results will be consistent with such forward looking statements.

This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.

Glossary of Technical Terms:

"Li2O"	means Lithium oxide
"lepidolite"	is the mineral name for lithium bearing mica KLi2Al(Si4O10)(F,OH)2  an important ore of lithium
"pegmatite"	is an exceptionally coarse-grained igneous rock, with interlocking crystals, usually found as irregular dikes, lenses, or veins, esp. at the margins of granitic intrusions
"petalite"	" is the mineral name for lithium aluminium silicate LiAl(Si4O10) an important ore of lithium
"spodumene"	is the mineral name for lithium aluminium silicate LiAlSi2O6 an important ore of lithium

ENDS

 

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