Premier African shares fall on progress at RHA Tungsten
Premier African Minerals updated the market on progress to restart tailing reprocessing at RHA Tungsten on Thursday, following a site visit by the Zimbabwe’s minister of industry and commerce, Dr Sekai Nzenza, on behalf of the National Indigenisation and Economic Empowerment Fund (NIEEF).
The AIM-traded firm said that following the visit, NIEEF requested until 11 March to evaluate the basis of its ongoing involvement with RHA following the submission by Premier of revised cost estimates, denominated in RTGS dollars, for RHA and other planned plant improvements.
Local costs in RTGS dollars were said to be increasing at a rate “substantially greater” than implied by the official rate at which the RTGS dollar exchanges against the US dollar.
NIEFF was expected to re-evaluate, either providing additional funding for RHA in RTGS dollars reflecting those increased local costs, or varying the terms of the RHA shareholder agreement that would allow Premier to access alternative external funding, which in turn would provide for the escalating costs when expressed in local currency.
“I am deeply appreciative for this visit and the frank discussions with the honourable minister,” said chief executive officer George Roach.
“The support we continue to receive from the Zimbabwean government confirms the importance of this project.
“Pursuant to the above request by the minister, we have agreed to place mobilisation and commissioning on hold pending their review.”
At 1454 GMT, shares in Premier African Minerals were down 10.44% at 0.09p.