Last checked at 20 Jul 2018 11:12
Premier African Minerals Limited / Ticker: PREM / Index: AIM / Sector: Mining
For immediate release
20 July 2018
Premier African Minerals Limited
Board changes, Notice of AGM and Corporate Update
Premier African Minerals Limited (AIM: PREM), the London-quoted mining and exploration company is pleased to announce the appointment of Michael Foster as interim Chairman and notice of the Annual General Meeting ("AGM").
Board changes - Appointment of Chairman
Premier is pleased to announce that Mr Michael Foster, a Senior Non-Executive Director on the Board of Premier has been appointed as Non-Executive Chairman of the Company with effect from 20 July 2018. Michael Foster will replace George Roach who remains as CEO of Premier.
George Roach, CEO commented: "The separation of Chairman and CEO roles is long overdue and is expected to enhance board oversight and direction. Michael has a wealth of experience in management and development of resource companies and I am appreciative that he has agreed to work with me over the next 6 months that are critical to realising the vast potential that Premier offers."
Michael Foster said: "I am delighted to have been appointed as Chairman of Premier. My focus will be on strategic governance, improving all aspects of board oversight and assisting management meet targets and advance the Zulu Lithium Project as well the RHA tungsten mine in Zimbabwe.
George Roach has assembled an excellent portfolio of assets over the years and I believe that with the right approach and partners significant value can be unlocked in the immediate future."
RHA Tungsten Project
In expectation of sign-off of the proposed RHA Tungsten Project ("RHA") equity restructuring by the Zimbabwean Government, the Company has had RHA's management undertake an in-depth assessment of alternatives to reopen RHA, and three options have been proposed to the Board.
The first three original options are based on a limited drilling programme ("Drill Programme") being completed. The Drill Programme is broken down into two parts, the first part will include fifteen 50-meter boreholes to establish at what depth below the current pit floor, previously predicted ore grades are likely to materialise, and whether or not the open pit can be profitably brought back into production. The second part comprises eight 250-meter boreholes to confirm geological depth extensions which will guide the Board on the decision as to either develop a new decline vehicle access for high tonnage from the underground operations or maintain a lower tonnage operation through depth extensions to the existing vertical shaft.
In is further worth noting that the Price of Wolframite ("APT") has increased steadily and at this time is at US$354 per mtu (metric ton unit, being 10 kg of tungsten trioxide equivalent contained in a concentrate). This substantial and sustained price increase in the APT and the fact that RHA can brought back into production at short notice has resulted in a potential fourth option. These options are summarised below,
Option 1 | Re-commence of existing underground operations at 6,000 tpm and maintain same mining rate for life of mine. Four-month stope development will access required tonnage at projected in situ grade of 7,1 kg per tonne WO₃. |
Option 2 | Combines Option 1 plus the construction of a new decline shaft to allow vehicle access direct to the underground operations and a substantial increase in ore delivery to the plant at significantly reduced mining cost. |
Option 3 | Combines Option 1 with reopening of the open pit and is the option most likely to see best use of the XRT sorter, significant increases in throughput and lowest capital expenditure. |
Option 4 | Wolframite production could commence from as early as the second month of mining and without any further drilling as a result of the improved APT price. |
The Company has engaged an independent consultancy to review Option 4 as this does not require the Drill Programme, and the Company considers that it is in the best interests of the Company and its shareholders if mining and processing operations are restarted at RHA.
The Company is currently reviewing various funding options for RHA which include a new off-take agreement with advance payment for concentrate, zero cost drilling as an offset for the drilling contract at Zulu Lithium (Pvt) Ltd, direct equity investment at project level, spin-out into a new company of which Premier would retain a "no cost" interest as well as possibly funding by Premier if the APT price continues to escalate as has been the case to date over the past 12 months.
Self-financing of RHA is the least preferred option and would only be considered on the basis of either a rights issue or open offer.
Annual Accounts
Work to complete the Company's annual report and accounts for the year ended 31 December 2017 (the "Annual Accounts") is nearing completion, and the Company expects to publish the Annual Accounts no later than 27 July 2018.
Notice of AGM
Premier African Minerals Limited, ("Premier" or the "Company") is pleased to announce that the Annual General Meeting ("AGM") of the Company will be held at at the Pullman Brussels Centre Midi Hotel, Place Victor Horta 1, Brussels 1060, Belgium on 9 August 2018 at 10:00 am (UTC+1).
The notice of the AGM ("Notice") and Form of Proxy is now available for download on the Company's website at www.premierafricanminerals.com.
Shareholders can review the Explanatory Notes to the proposed resolutions to be proposed at the AGM as set out in Appendix 1 of the Notice. In particular, the Notice sets out the Company's future strategy:
Ø actively seek to finalise the equity ownership at RHA,
Ø complete the independent review of the RHA option as discussed in the Chairman Statement,
Ø seek to finance RHA back to production through the preferred means of either external debt, a joint venture, sale of equity at project level or a funded take-off agreement,
Ø seek to conclude the due diligence process at Zulu and implement the investment agreement with Cadence,
Ø look to enhance technical skills and add diversity at Board level,
Ø not contemplate any further acquisitions that is not near-term cash generative until both Zulu and RHA are funded,
Ø strictly limit any financing to necessary operating overheads, and
Ø seek to avoid any form of structured convertible finance.
Webinar
The Company is hosting a webinar on Wednesday 25 July at 11:00 am (UTC+1) to discuss the proposed strategy as well as provide a general corporate update. Please click on the following link to register and join the webinar, https://zoom.us/s/139614727.
The Company will also stream the AGM by a webinar that will allow direct access to the meeting from any internet linked computer or smart device. Please click on the following link to register and join the webinar, https://zoom.us/s/911429653.
Enquiries:
Fuad Sillem | Premier African Minerals Limited | Tel: +44 (0)7734 922074 |
Michael Cornish / Roland Cornish | Beaumont Cornish Limited (Nominated Adviser) | Tel: +44 (0) 20 7628 3396 |
Jerry Keen/Edward Mansfield | Shore Capital Stockbrokers Limited | Tel: +44 (0) 20 7408 4090 |
Jonathan Evans | Brandon Hill Capital Limited | Tel: +44 (0) 20 3463 5000 |
Notes to Editors:
Premier African Minerals Limited (AIM: PREM) is a multi-commodity mining and natural resource development company focused on Southern Africa with its flagship RHA project in Zimbabwe.
The Company has a diverse portfolio of projects, which include tungsten, rare earth elements, lithium and tantalum in Zimbabwe, encompassing brownfield projects with near-term production potential to grass-roots exploration. In addition, the Company holds 5,010,333 shares in Circum Minerals Limited ("Circum"), the owners of the Danakil Potash Project in Ethiopia, which has the potential to be a world class asset. Premier also has an interest in Arc Minerals that has several mineral assets in Europe and Africa.
Forward Looking Statements:
Certain statements in this announcement are or may be deemed to be forward looking statements. Forward looking statements are identified by their use of terms and phrases such as ''believe'' ''could'' "should" ''envisage'' ''estimate'' ''intend'' ''may'' ''plan'' ''will'' or the negative of those variations or comparable expressions including references to assumptions. These forward-looking statements are not based on historical facts but rather on the Directors' current expectations and assumptions regarding the Company's future growth results of operations performance future capital and other expenditures (including the amount. nature and sources of funding thereof) competitive advantages business prospects and opportunities. Such forward looking statements reflect the Directors' current beliefs and assumptions and are based on information currently available to the Directors. Many factors could cause actual results to differ materially from the results discussed in the forward-looking statements including risks associated with vulnerability to general economic and business conditions competition environmental and other regulatory changes actions by governmental authorities the availability of capital markets reliance on key personnel uninsured and underinsured losses and other factors many of which are beyond the control of the Company. Although any forward-looking statements contained in this announcement are based upon what the Directors believe to be reasonable assumptions. The Company cannot assure investors that actual results will be consistent with such forward looking statements.