Premier African Minerals Limited RHA Update (3864A)

TIDMPREM

RNS Number : 3864A

Premier African Minerals Limited

21 January 2020

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

For immediate release

21 January 2020

Premier African Minerals Limited

RHA Update

The Board of Premier African Minerals Limited ("Premier" or the "Company") Limited ("Premier" or the "Company") is pleased to announce the commissioning of Grid Electrical power to RHA Tungsten (RHA). Premier holds a 49% interest in RHA and is the operator.

George Roach, CEO, commented that, "We are reassured by the continued commitment of National Indigenisation and Economic Empowerment Fund to meeting the financial commitment to the funding of RHA. As of now, adequate power is available from the national grid to consider the resumption of plant operations at the end of January 2020 to reprocess historic tailings.

Premier previously reported on the potential reprocessing of tailings on 29 June 2016. The test work conducted at that time remains valid and the availability of electrical power has substantially reduced the cost associated with operating the plant. Similarly, and by arrangement with MN Holding Limited ("MNH") in which Premier has recently acquired a shareholding, the capital plant needed to feed the tailings at RHA is now expected to be potentially available to RHA at net operating cost only.

Further supporting the proposed reprocessing of tailings is the fact that historic tailings are already mined and milled such that the tailings may be fed directly to the gravity recovery sections of the plant, with the added benefits of only needing to run a portion of the plant and reaping the benefits of much lower overall operating costs, better plant availability, reduced maintenance and lower manpower requirements.

Based on the above, I believe that it is completely logical that RHA should now look to consider the reprocessing of the tailings dumps as soon as possible.

Further updates will follow in due course."

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:

 
                      Premier African Minerals        Tel: [phone] 
 Fuad Sillem                   Limited                          922074 
 Michael Cornish /    Beaumont Cornish Limited    Tel: [phone] 
  Roland Cornish         (Nominated Adviser)                      3396 
                    ---------------------------  --------------------- 
 Jerry Keen/Edward   Shore Capital Stockbrokers   Tel: [phone] 
  Mansfield                    Limited                            4090 
                    ---------------------------  --------------------- 
 

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. The Company holds 5,010,333 shares in Circum Minerals Limited, the owners of the Danakil Potash Project in Ethiopia, which has the potential to be a world class asset. In addition, the Company holds a 10% interest in MN Holdings Limited, the owner and operator of the Otjozondu Manganese Mining Project in Namibia.

Forward Looking Statements:

Certain statements in this announcement are, or may be deemed to be forward looking statements. Forward looking statements are identi ed 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 re ect 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 information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [e-mail] or visit www.rns.com.

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January 21, 2020 02:00 ET (07:00 GMT)