MULTI-commodity mining and resource development company- Premier African Minerals – says a local bank has offered to provide direct finance to its 49 percent-owned RHA tungsten mine in Hwange District.
The project is owned by RHA Tungsten, a joint-venture between ZimDiv Holdings, a subsidiary of Premier, and the National Indigenisation and Economic Empowerment Fund (NIEEF) on behalf of the government of Zimbabwe (51 percent).
Without specifically mentioning the name of the local financial institution, the mining group said:
“As part of the continuing preparations in respect of underground ore processing, RHA has increased its working capital facilities with a $200,000 general credit facility from a local bank, which may be utilised for payment of direct operating expenses associated with the production of wolframite concentrates.
“The facility bears interest at the bank’s costs of funds plus a margin of 8,75 percent and is guaranteed by Premier.
“The on-demand facility is for an initial term until October 31, 2016.” Premier chief executive officer George Roach said it was a new development that the RHA project from a Zimbabwean financial institution instead of internal resources.
“It’s most encouraging that a local banking institution has a level of confidence in RHA such that they’re prepared to extend a facility for normal working capital requirements linked to shipment of concentrates.
“Historically, Premier has met 100 percent of all expenses incurred by RHA,” he said.
The RHA tungsten mine, which is located approximately 20 kilometres south-east of Hwange and 270km north of Bulawayo is Premier’s flagship operation, although the AIM-listed group has several operations in Southern and Western Africa. – BH24