Zulu Lithium Drilling Programme Update

RNS Number : 0387Z

Premier African Minerals Limited

15 May 2019

 

For immediate release

15 May 2019

Premier African Minerals Limited

Zulu Lithium Drilling Programme Update

Premier African Minerals Limited ("Premier" or the "Company") previously announced on 26 February 2019 that it would recommence drilling at the Company's wholly-owned Zulu Lithium and Tantalum Project ("Zulu") in Zimbabwe, and that KME Plant Hire Proprietary Limited ("KME") would be the drilling contractor to carry out these drilling works. Drilling was expected to commence as soon as mobilisation was complete and seasonal rains permitted.

The budget for the initial drilling programme (as described above), including mobilisation, was estimated at approximately US$400,000 and the Company issued within the Company's existing share authorities 212,413,793 new Ordinary Shares of nil par value at an issue price of 0.145p per share ("KME Payment Shares") to KME as pre-payment for mobilisation and drilling. The KME Payment Shares were admitted to trading on AIM on 4 March 2019. 

The KME Payment Shares, while issued, have not to date been released by Premier to the control of KME, pending execution of the long form drilling contract, which is not currently in a final form that is acceptable to both parties reflecting their current relationship. On the basis that the long form drilling contract is mutually agreed between the parties, and as the rainy season has now largely subsided, drilling will then proceed on Zulu and the KME Payment Shares released by Premier to KME's control. If agreement, however, cannot be reached with KME on the final outstanding terms of the long form drilling contract, then KME's appointment will end, the KME Payment Shares will be cancelled and Premier will in due course appoint a new contractor to undertake the drilling programme at Zulu.

 A further announcement will be made in due course.

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]
Tom Curran/Elliot Hance	SVS Securities Limited	Tel: [phone]

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.  Many 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. The person who arranged the release of this announcement on behalf of the Company was George Roach.

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 and Zulu 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.

ENDS

 

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