Last checked at 26 May 2020 13:04
Premier African Minerals Limited / Ticker: PREM / Index: AIM / Sector: Mining
For immediate release
26 May 2020
Premier African Minerals Limited
Corporate Update
The Board of Premier African Minerals Limited ("Premier" or the "Company") is pleased to reaffirm the basis for the proposed purchase of a further 7% in MN Holdings Limited ("MNH"), the owner and operator of the Otjozondu Manganese Mining Project ("Otjozondu") in Namibia as announced on 6 May 2020 and also set out the trading update below that has been provided by the management of Otjozondu.
Premier's proposed additional purchase is based exclusively on the independent valuation for further plant and equipment that MNH has purchased as set out in the announcement dated 4 December 2019. This proposed purchase is priced at the identical valuation used in the first purchase and does not consider any other project valuation basis or trading. Nevertheless, Otjozondu has confirmed that anticipated gross export tonnages of Manganese lump ore are now up to 5,600 ton per month at an average grade of approximately 34% Mn.
At this level of export and on the basis of ruling prices and terms, this equates to circa 190,400 dmtu. Gross revenue is determined by future selling price. The most recent sale was for a shipment of 1,405 ton of lump ore and the price per dmtu was US$5.00.
MNH has further confirmed their existing dividend policy is to distribute cash surpluses after provisions for tax, royalties, expansion and appropriate reserves on a quarterly basis.
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.
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 |
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 RHA Tungsten and Zulu Lithium projects 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. The Company holds 5,010,333 shares in Circum Minerals Limited, the owners of the Danakil Potash Project in Ethiopia, which has the potential to be a world class asset. In addition, the Company holds a 12% interest in MN Holdings Limited, the owner and operator of the Otjozondu Manganese Mining Project in Namibia.
Glossary
"dmtu" "Mn" | Dry metric ton unit. Equivalent to 10 kg of Mn Manganese.
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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. A number of 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.
ENDS