RNS28 Jan 2020 07:12
The Board of Premier African Minerals Limited ("Premier" or the "Company") Limited ("Premier" or the "Company") is pleased to announce the signing of a Cooperation Agreement with MN Holding Limited ("MNH") for the supply of mining and exploration machinery and the professional assistance with the optimization of the Premier's various mining and exploration operations, collectively the "Services" ("Corporation Agreement").
George Roach, CEO, commented that, "This is another step towards the revival of RHA Tungsten Private Limited ("RHA") and apart from the reprocessing of tailings whilst we bring the underground development back to life, the dramatically reduced cost of operating a mining fleet arising from the association with MNH, will encourage a re-evaluation of the possible restarting of open pit operations as well.
I have now completed two site visits with the management of MNH and the complete route to locate the equipment and the route to Walvis Bay for future export has been surveyed and approved. In situ inspection of the tailings to be reprocessed has resulted in agreement on necessary equipment and MNH will now commence with mobilisation. MNH have also agreed to make available their professional expertise to assist RHA and will be the operators of the mining fleet. The potential exists to see further operating cost reductions flowing from the integration of MNH expertise.
At the same time, a 5-ton bulk sample of underground ore is now cleared for shipment to undergo detailed test work leading up to the optimisation of the process long budgeted for. During this test work, we will look also to optimise the concentrates now able to be produced both to improve the concentrate grade as to understand whether or not any other mineral is profitably recoverable. Other minerals specifically include copper that is coexistent with gold traces."
Key terms of the Corporation Agreement
The Corporation Agreement will initially provide Premier with the following plant and equipment for use at RHA:
1) Two cubic meter Wheel loader;
2) 20-ton Dump Truck;
3) Tractor/water bowser for dust suppression with alternate blade for road work; and
4) 1 x 4-wheel drive Tractor-Loader-Backhoe.
This Agreement will commence from today and will continue until terminated by either party by giving four months written notice of termination. MNH will supply its Services on the basis that the total cost to Premier will be the sum of all reasonable net disbursements incurred by the Provider in provision of the Services. Payment for the Services will initially be made against receipt of proceeds from the sale of Wolframite concentrate at RHA.
This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014. The person who arranged the release of this announcement on behalf of the Company was George Roach.
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