Investment by NIEEF into RHA

RNS Number : 7201D

Premier African Minerals Limited

27 June 2019

 

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

For immediate release

27 June 2019

Premier African Minerals Limited

Investment by NIEEF into RHA

Premier African Minerals Limited ("Premier or the Company") is pleased to report the receipt of six million in Zimbabwean local currency ("RTGS Dollars"), a portion of the investment the National Indigenisation and Economic Empowerment Fund ("NIEEF") has undertaken to provide to RHA Tungsten Private Limited ("RHA") to assist in potentially bringing RHA back into production.

George Roach, CEO said, "It was widely reported on 24 June 2019 that Zimbabwe had effectively adopted its own currency and that legal tender in the domestic environment now excluded the direct use of all foreign currencies. This policy directive by the Reserve Bank of Zimbabwe has affirmed that the RTGS Dollar will be Zimbabwe's sole legal tender. In this context, RHA has now received a remittance of 6 million RTGS Dollars that has been credited to RHA's bank account. Whilst we expect an adjustment to various of the quoted anticipated expenditure items that need to be met to bring RHA back to full production, we also expect that much of the expenditure will now remain at a one to one RTGS US$ conversion. Examples of this include debt, including RHS's bank overdraft (currently underwritten by Premier), as well as other local debts that can potentially be settled from this remittance.

Uncertainty remains in regard to items that will need to be supplied from outside Zimbabwe, as well as the exact cost of electrification which is an essential requirement for RHA. We are pleased that the Zimbabwe Ministry of Industry, Commerce and Enterprise Development ("Ministry") have assured us that NIEEF intends to work closely with RHA to ensure solutions to these challenges are found.

In the interim, we will revaluate how best we can commence with the process of bringing RHA back into production as expeditiously as possible. I look forward to providing the market with further update as we progress.

Further commentary on the introduction of the RTGS Dollars is being included in Premier's annual accounts for the year ended December 2018 that we expect to publish later tomorrow". 

This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014. The person who arranged the release of this announcement on behalf of the Company was George Roach.

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]

Notes to Editors:

Premier African Minerals Limited (AIM: PREM) is a multi-commodity mining and natural resource development company focused on Southern Africa with its RHA Tungsten and Zulu Lithium projects 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.

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.

 

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