LONDON-based resources outfit, Premier Mining, says it is reviewing its operations in Zimbabwe to secure its two assets, RHA Tungsten and Zulu Lithium, against the high country risk that has been haunting investors.
BY MTHANDAZO NYONI
This is in response to a key partner’s request for a complete relook of RHA Tungsten’s operations before releasing funding to bring it back to production.
It may result in the firm separating the two operations, according to Premier’s CEO George Roach.
Roach said last week that the firm that has requested the reviews had agreed to an offtake deal with Premier, which guarantees a ready market for the firm’s output.
“Simultaneous with this, Premier has determined that it should also look to secure its future without the country risk associated with RHA Tungsten and Zulu Lithium and to separate these operations,” Roach said.
“The recent funding, and the potential for securing high-grade exploration assets, generally support a share consolidation and the board of Premier will consider this at a time in the future and simultaneous with potential future transactions.”
Premier also revealed that the board had agreed to amend the terms of the existing loan agreement with Roach by amending the conversion rights with respect to the entire facility and to settle the loan in full by an issue of new ordinary shares in order to preserve cash.
Roach said Premier was now debt-free and well-funded for the immediate future after settling all outstanding loans and amounts owed to directors, employees and certain creditors.
In a statement, Premier said these debts were in respect of accrued, but unpaid contractual amounts due, together with repayment of outstanding loans.
The debts totalling about £600 000, were settled through the issuance of new ordinary shares.
The company agreed to repay the entire amount of US$200 000, plus accrued interest of US$37 271.40 through an issue of 456 291 154 new ordinary shares to Roach at an issue price of 0,04p.
The board also agreed to settle the existing loan agreement entered into with Brendan Roach (BR Loan) on a similar basis, by repaying the entire BR Loan amount of £84 000, plus accrued interest of £12 447 through the issue of 241 117 500 new ordinary shares.
Premier also agreed to issue a further 323 144 327 new ordinary shares to directors in settlement of all remaining accrued but unpaid fees, expenses and amounts due totalling £129 258, which represents about 2,39% of the current issued share capital.
“Following completion of the placement as set out in the announcement dated 21 October 2020, together with this subsequent issue of new ordinary shares in settlement of liabilities, the company will be debt-free and well positioned for future development,” said the CEO.
Roach said the company was now much more efficient with reduced overheads and able to focus on the future from a position of improved financial strength.
“I am very pleased to confirm that Premier is now debt-free and well-funded for the immediate future,” he said.
“Together with the cost reductions achieved over the past few years, we are also a much more efficient company with reduced overheads and able to focus on the future from a position of improved financial strength.
“Premier is assessing promising exploration opportunities in more than one African jurisdiction and I look forward to keeping our shareholders updated with progress as this happens.
“At the same time, initial exploration on our tenement in Mozambique can now proceed and other new tenement applications in Mozambique are underway.”
Roach said they were looking forward to continuing developing the firm’s relationship with MN Holdings Limited, the operators of Otjozondu Manganese mine in Namibia, in which Premier holds 19% shareholding.
He said the ongoing relationship would now be subject to an independent audit and valuation.