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(Alliance News) - Premier African Minerals Ltd said on Monday it issued a loan to MN Holdings Ltd, the operator of the Otjozondu manganese mining project in Namibia.
The mining and natural resource company's USD1.4 million loan to MN Holdings has a maturity date of October 1, 2021 and an annual interest rate of 10%.
The financing will allow MN Holdings to purchase equipment which would then enable it to increase production and revenue in its mining project which is located 150 kilometers north east from Windhoek, the Namibian capital, Premier African said.
Chief Executive George Roach said: "I sincerely expect that this loan may lead to a closer relationship in time with Otjozondu that may be in the best mutual interests of both parties."
Roach also said that Neil Herbert, Otjozondu's chair, will join Premier African as a consultant, further strengthening the partnership between the two companies.
Shares in Premier African were 9.6% higher at 0.0493 pence each in London on Monday afternoon.