(Alliance News) - Mining and natural resource company Premier African Minerals Ltd said on Tuesday it has issued a loan to Manganese Holdings Ltd to fund and increase production from the Otjozundu project, Namibia.
Premier African said the deal could see Manganese Holdings boost production in Otjozunda from its current rate of 5,000 tonnes per month. Premier also said the repayment of the loan could help it fund its own Zimbabwe operations.
The company also said it does not need to make an further financial commitments to the RHA Tungsten mine. Maintenance and ongoing care costs in the project "could not be reduced below USD30,000 per calendar month", Premier said.
Premier expects production in the mine to begin within four months but will first need electrification from the Zimbabwe Electricity Supply Authority.
Premier is yet to receive an exclusive prospecting order from regulators for Zulu however.
The company also said that initial test work in the Zulu lithium project has found that there is potentially high grade spodumene zones. Premier anticipates Zulu will produce lithium grades of 6.5% and "should enjoy a more stable market and better demand and pricing".
Shares in Premier closed 5.7% down at 0.033 pence each in London on Tuesday.
Premier African Minerals (PREM)