Come on George--give us a clue.10 Nov 2019 09:46
IMO--in a nutshell:
Roach:
That said, I need to dwell on the need to diversify and seek cash generative opportunities in the immediate future.
To this end, Premier recently entered into a loan agreement with MN Holdings Limited ("MNH"), the owner and operator of the Otjozondu Manganese Mining Project ("Otjozundu"), to facilitate the acquisition by MNH of certain additional equipment inter alia to allow MNH to rapidly accelerate production levels from the current rate of 5,000 ton per month at its manganese operations in Namibia. At the same time, Premier is looking to implement its own board and executive changes. MNH is a private unlisted company and believes its future belongs in the public domain and that its expansion into a mine of significance must see the asset listed. Premier was fortuitously able to offer the assistance needed to MNH by providing funding, and at the same time strengthen our own board and add to our management, in the immediate short-term. As and when the board appointments are made, Premier should find itself closer to MNH and will be in a better position to fully assess the basis of any future cooperation. Any other arrangements or proposals with MNH at the time of the loan may well have resulted in a potential subsequent reverse transaction that, without publication of an admission document, could have led to a suspension of the Company's shares from trading, resulting in an inability of MNH to trade-out the shares constituting the loan and the inability of Premier to continue to fund its own operations.
MNH is profitable now. Repayment of the loan could potentially fund Premier's Zimbabwean operations just as this is needed. And a reconstituted board will be able to consider and agree the way ahead as much for our cooperation with MNH as for our Zimbabwe-based operations.
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