Premier increases stake in Namibia’s manganese firm

12 Feb, 2020 - 00:02 0 Views
Premier increases stake in Namibia’s manganese firm Premier African Minerals

The Chronicle

Oliver Kazunga, Senior Business Reporter

ZIMBABWE-focused miner, Premier African Minerals, has acquired a further two percent stake at Namibian MN Holdings Limited for US$200 000, which is expected to assist the diversified group in restarting production at its RHA Tungsten projects.

The acquisition of an additional two percent shareholding has brought Premier’s stake in MN Holdings (MNH), which owns Otjozondu Manganese Mining project in Namibia, to 12 percent.

In a statement Premier, which owns 49 percent shareholding in the Matabeleland North-based RHA Tungsten project, said in acquiring a further two percent stake in MNH, it had satisfied the consideration due through the issue of 171 074 444 new ordinary shares.

“The board of Premier African Minerals Limited is pleased to announce that it has agreed to acquire for US$200 000 a further 2 percent in MNH, the owner and operator of the Otjozondu Manganese Mining Project in Namibia.

“On completion of the acquisition, Premier’s interest in MNH will increase to 12 percent.”

The group’s chief executive officer, Mr George Roach, was quoted as saying the acquisition of a further two percent stake in MNH would in a certain way result in Premier becoming an independently cash generative business.

“This is another small step on the way to becoming independently cash generative, which will assist in our plans for the restarting of production at RHA Tungsten (Pvt) Limited and in due course, the long-awaited exploration and development of Zulu Lithium.

“MNH is one of very few manganese producers able to lay claim to remain cash positive and profitable through the recent fall in manganese prices, and with the recent reversal and more positive outlook for manganese, our association with MNH bodes well for the future,” he said.

In 2018, Premier announced that a study from consultant, Bara, confirmed that the mining group’s RHA Tungsten project in Zimbabwe showed that it would be technically viable to restart underground mining operations.

Bara in its study offered two scenarios — one for an underground restart at 6 000 to 7 000 tonnes per month.

The RHA Tungsten project is located in an area of historic production — about 270 kilometres north-west of Bulawayo — that comprises 50 mineral claim blocks, covering 1 800 hectares, consisting of 10 owned by Premier and 40 which are under option.

Small-scale surface and underground mining operations were conducted at the site between 1931 and 1979. — @okazunga

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