Newco18 Oct 2019 08:40
If you replace KME with MNH this,in my opinion is how Prem will be restructered:
Key benefits of the Transaction expected to be as follows:
- Enables the immediate recommencement of work on key projects;
- Newco will be a Zimbabwean-focussed mining, development and exploration company and a platform for future growth and acquisitions;
- Planned introduction of a new Zimbabwe-based management team at Newco, with the relevant skills and experience in the design, construction, commissioning and operating of numerous large-scale opencast and underground mines to efficiently fast-track RHA Tungsten Mine back to production;
- The open pit mining fleet and underground mining equipment will significantly reduce the operating cost and improve efficiencies of the RHA Tungsten Mine;
- KME's drilling equipment and exploration team will reduce the drilling cost of the Zulu Lithium Project as well as expedite the drilling programme;
- Provide reduced cost basis for both drilling and exploration work on potential new projects in Zimbabwe;
- Direct participation by existing Premier shareholders who will receive a distribution of Newco shares on Listing;
- Continued shareholding in Premier provides an exposure to the potential upside of Premier's interest in Circum Minerals Limited; and
- Overhead reductions in Premier on completion, with operational responsibility transferred to Newco.
George Roach, CEO, commented:
"This proposed transaction is intended to accelerate a return to production at RHA and commencement of the work needed to complete the proposed Definitive Feasibility Study at the Zulu Lithium Project. In effect, when the equity in RHA Tungsten Mine is adjusted as is indicated by the Zimbabwean Government, Premier and Premier shareholders will on completion hold a substantially similar stake in RHA Tungsten Mine and Zulu Lithium Project whilst ongoing operating costs at Premier will be reduced and Premier effectively ring-fences its shareholding in Circum. My views are supported by the KME Management team who believe that this transformative transaction delivers considerable value to both Premier's and KME shareholders through the combination of a revised Zimbabwean management team that has a proven track record to successfully operate mines and develop exploration projects under Zimbabwean working conditions. The further development of Premier's mineral assets are substantially de-risked by the inclusion of KME Assets into the Newco thereby allowing for greater potential shareholder value in the long term.
The KME management team has detailed knowledge of the RHA Tungsten Mine and they foresee no significant operational difficulties in bringing the RHA Tungsten Mine back into production.
I anticipate further announcements in the coming days, not least in regard to the RHA Tungsten Mine equity resolution as Premier continues to be in constan
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