Last checked at 25 Apr 2022 07:00
25 April 2022
Premier African Minerals Limited
Joint Venture Agreement
Premier African Minerals Limited ("Premier" or the "Company"), is pleased to confirm that it has signed a binding Joint Venture Agreement ("JV Agreement") with Li3 Resources Inc. ("Li3 Resources") whereby Li3 Resources will acquire a 50% interest in Premier's hard-rock lithium assets located in the Mutare Greenstone Belt in Zimbabwe. Premier acquired these claims in June 2020 (see RNS 10 June 2020). The assets are held by Premier's wholly-owned subsidiary LicoMex Private Limited (the "Li3 Project").
Highlights:
· | The Li3 Project holds a number of prospective claim blocks in the Mutare Greenstone Belt, an area prospective for lithium and gold.
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· | This JV Agreement facilitates exploration activities that are funded independently of Premier's Zulu Lithium Private Limited operations.
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· | Li3 Resources has until 31 December 2022 to acquire the 50% interest in the Li3 Project by spending US$250,000 in further exploration works. |
George Roach, CEO commented, "The Li3 Project is located in a region in Zimbabwe that is receiving significant interest in both Lithium and potential gold deposits. The claim blocks are well located and, in several instances, have already attracted interest from international lithium producers. Of particular importance is that Li3 Resources plans to list on the Toronto Stock Exchange and this brings to Zimbabwe, widened international interest and investment.
To Premier, this expands our lithium interests in Zimbabwe and whilst exploration and development at Zulu is independent of the activities of the Li3 Project, there is bound to be benefit and synergy. Li3 Resources has indicated that their contribution will be settled in one complete payment and this is expected imminently."
JV Agreement
Li3 Resources has agreed to invest US$250,000 into the Li3 Project for the ongoing exploration works, environmental and technical studies and any administrative expenses ("Spend"). Li3 Resources will have until the 31 December 2022 to invest the Spend in order to exercise the option to acquire the 50% interest in the Li3 Project ("Period").
In the event that Li3 Resources do not meet the required Spend within the Period, the Option will lapse.
About Li3 Resources
Li3 Resources is a private, lithium focused exploration company founded and backed by senior mining executives who have had prior success in the lithium sector. The Li3 Project is the first of a number of targeted lithium acquisitions by Li3 Resources. The plan is to acquire an attractive portfolio of highly prospective lithium exploration projects worldwide and then list the company's shares on a recognised international stock exchange. The Li3 Resources senior management have successfully executed similar transactions during their past 30 plus year history in the mining sector.
Li3 Project
Premier originally acquired the Li3 Project from Lithium Consolidated Ltd on 28 July 2020. The 1,500 hectares of licences are retained within the Mutare Greenstone Belt, located close to the eastern border with Mozambique. The area was deemed prospective for LCT-type pegmatites based on target generation work completed by Douglas Haynes.
The Mutare Greenstone Belt ("MGB") is an arcuate belt approximately 100km long with a NE-SW trend. The belt is a syncline made up of ultramafic, mafic and banded-iron formation of the Bulawayan Group on the flanks, and younger metasediments of the Shamvaian Group in the core. Granitoid intrusions are present to both the north and south of the belt.
A number of LCT pegmatites are located within the MGB including the Grand Duke, Portree and Bepe deposits. The pegmatites have been historically mined for beryl and tantalite, and several companies in the region are currently conducting exploration for both tantalite and lithium.
Market Abuse Regulation
The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 as it forms part of UK Domestic Law by virtue of the European Union (Withdrawal) Act 2018.
The person who arranged the release of this announcement on behalf of the Company was George Roach.
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.
Enquiries
George Roach | Premier African Minerals Limited | Tel: +27 (0) 100 201 281 |
Michael Cornish / Roland Cornish | Beaumont Cornish Limited (Nominated Adviser) | Tel: +44 (0) 20 7628 3396 |
John More/Toby Gibbs | Shore Capital Stockbrokers Limited | Tel: +44 (0) 20 7408 4090 |
Matthew Bonner | EAS Advisors LLC | Tel: +1 646 495 2225 |
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 and lithium and gold in Mozambique, encompassing brownfield projects with near-term production potential to grass-roots exploration. The Company has accepted a share offer by Vortex Limited ("Vortex") for the exchange of Premier's entire 4.8 per cent interest in Circum Minerals Limited ("Circum"), the owners of the Danakil Potash Project in Ethiopia, for a 13.1 per cent interest in the enlarged share capital of Vortex. Vortex has an interest of 36.7 per cent in Circum.
In addition, the Company holds a 19 per cent interest in MN Holdings Limited, the operator of the Otjozondu Manganese Mining Project in Namibia.
Glossary | |
"Beryl" | A beryllium silicate (Be3Al2(Si6O18)), the most important beryllium ore. |
"Tantalite" | A tantalum oxide ((Mn,Fe)(Ta,Nb)2O6), the most important tantalum ore. |
"LCT pegmatite" | A coarse-grained igneous rock containing economic quantities of lithium ("L"), caesium ("C") and tantalum ("T"). |
"Syncline"
| A fold in which the core contains the stratigraphically younger rocks; it is generally concave upward. |
"Ultramafic" | Igneous rocks that contain more than 90 vol-% mafic minerals are called ultramafic. |
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