HARARE – Zimbabwe-focused diversified mining group Premier African Minerals is looking to raise £750 000 for its RHA Tungsten operation in Zimbabwe.
The placement was made last week on the Alternative Investment Market (AIM).
Through the placement, Premier is targeting to raise £750 000 (around $963 000) before expenses at an issue price of 0, 18 pence per new ordinary share.
The mining group is wants to supplement working capital, in part to support costs associated with the restructuring and ongoing holding costs of the RHA Tungsten Mine, which remain vital to bringing RHA back into production.
“This placement gives Premier a head start at RHA and provides the working capital necessary for the group as a whole. Being able to get the additional drilling started immediately at RHA is likely to add further value to the mine and will guide efficient and effective back-to-production strategies. With the Zulu Lithium and Tantalum Project nearing the completion of the Due Diligence period, I look forward to updating the market on the proposed investment by Cadence.
“At the same time, we have re-examined our bulk test on historic tailings at RHA and are confident that with improved tungsten prices at present, we are able to expedite reopening of operations using tailings as a supplemental ore feed, ” said Premier CEO George Roach of the placement.
The RHA Tungsten project is located in an area of historic production – approximately 270km northwest of Bulawayo – that comprises 50 mineral claim blocks, covering 1, 800 hectares, consisting of 10 owned by Premier and 40 which are under option.
Small-scale surface and underground mining was conducted at the site between 1931 and 1979. Total production from the RHA and Tung Mines was 1 247, 65 tonnes of wolframite concentrate, containing 65 percent WO3.
Premier recently announced a resource of 22, 14 million tonnes at 2, 45kg per tonne in both the underground and open pit operations.
It has invested around $18 million in the acquisition and development of the mine as well as the plant and necessary infrastructure.
In latest progress concerning RHA, Premier said it will begin mobilising the driller with the aim to commence a drilling programme of up to 2,750 meters as soon as possible with the objective of expanding the resource base as well as increasing the confidence levels of both the open pit and underground resources.
The company added that it is currently finalising an assessment of the wolframite resources contained in the tailings facility of RHA
Earlier last week, Premier said its proposal to “de-risk the development of RHA” had been favourably received by the relevant Ministries in Zimbabwe.
In terms of the de-risking, Premier is looking to have its loan account in RHA be capitalised in exchange for the issue of additional shares in RHA, which would result in Premier holding 90 percent of the shares in issue in RHA.