By Oliver Kazunga
Zimbabwe-focused diversified mining group, Premier African Minerals, has entered into a secured US$200 000 loan agreement and related subscription agreement as it seeks to consolidate its working capital reserves.
The mining concern, which owns the RHA Tungsten, Zulu Lithium and Tantalite Projects in Zimbabwe, announced last week that proceeds of the new loan would be used to support ongoing developmental programmes on its operations.
“Premier African Minerals Limited announces the conclusion of a loan instrument of US$200 000 . . . The proceeds of the new loan will be used to support ongoing development and provide additional general working capital for the company,” it said.
Premier said the annual interest rate payable on the outstanding amounts under the new loan is 10 percent per annum.
“The principal amount of US$200 000 will be made available to the company in one advance with no deductions. No warrants have been issued to the lender.”
The mining group said the lender may convert any percentage of the principal amount into new ordinary shares of the company, which, if the full amount is converted, can amount to 4,4 percent of issued share capital.
Meanwhile, Premier is waiting for a decision by Industry and Commerce Minister Dr Sekai Nzenza on behalf of the National Indigenisation and Economic Empowerment Fund (NIEEF) on how best to move forward with the RHA project.
At present, Premier is in discussions with NIEEF to agree on alternative financing options for the cash-strapped RHA Tungsten mining project in Kamativi.
NIEEF, a partner of Premier African Resources in the RHA Tungsten mining project, owns 51 percent shareholding.
Premier exclusively owns plant and equipment at the Kamativi mining operation and the group has pointed out that the mineral claims were ceded as security under the plant rental agreement by RHA to Premier.
In Matabeleland South province, the mining group also owns the Zulu lithium and tantalite project and has since applied for an Exclusive Prospecting Order from the Ministry of Mines and Mining Development.
“As previously reported, the company is still waiting for confirmation from the Zimbabwean Mining Affairs Board in respect of the exclusive prospecting order application (EPO) made by the company’s wholly owned Zulu.
“The company will provide an update as and when it receives written communication pertaining to the remaining procedural process for the award of Zulu’s EPO application,” said Premier. The Chronicle