Premier African Minerals Limited RHA Update (3243E)

TIDMPREM

RNS Number : 3243E

Premier African Minerals Limited

27 February 2020

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

For immediate release

27 February 2020

Premier African Minerals Limited

RHA Update

Premier African Minerals Limited ("Premier" or the "Company") reports, following a site visit by the Honourable Minister Dr. Sekai Nzenza of the Ministry of Industry and Commerce on behalf of the National Indigenisation and Economic Empowerment Fund ("NIEEF"), on the progress to re-commence the reprocessing of the tailings at RHA Tungsten Pvt Ltd ("RHA").

Following the visit, NIEEF requested until 11 March 2020 to evaluate the basis of NIEFF's ongoing involvement with RHA following the submission by Premier of revised cost estimates, denominated in RTGS Dollars, for RHA and other planned plant improvements. Local costs in RTGS Dollars are increasing at a rate substantially greater than implied by the official rate at which the RTGS Dollar exchanges against the US Dollar. NIEFF is expected to re-evaluate either providing additional funding for RHA in RTGS Dollars reflecting these increased local costs, or varying the terms of the RHA shareholder agreement that would allow Premier to access alternative external funding, which in turn would provide for the escalating costs when expressed in local currency.

George Roach, CEO, commented, "I am deeply appreciative for this visit and the frank discussions with the Honourable Minister. The support we continue to receive from the Zimbabwean Government confirms the importance of this project. Pursuant to the above request by the Minister, we have agreed to place mobilisation and commissioning on hold pending their review."

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 12% 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.

ENDS

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February 27, 2020 04:00 ET (09:00 GMT)