Business
RHA Investment and Management Agreement
RHA Investment and Management Agreement.
About this update from Premier African Minerals Ltd.
[{"type":"text","content":"\n \nRNS Number : 1211Y Premier African Minerals Limited 07 May 2019 \n\nPremier African Minerals Limited / Ticker: PREM / Index: AIM / Sector: Mining\nFor immediate release\n \n7 May 2019\n \nPremier African Minerals Limited\n \nCompletion of RHA Investment and Management Agreement \n \nPremier African Minerals Limited (\"Premier\" or the \"Company\") is pleased to report the signing of a new Management Agreement (\"MA\") with the National Indigenization and Economic Empowerment Fund of Zimbabwe (\"NIEEF\") that is expected to see RHA Tungsten Private Limited (\"RHA\") brought back into production without any further financing requirement from Premier. Premier holds a 49% interest in RHA and is the operator. \nGeorge Roach, CEO of Premier commented: \"Whilst it has been a long haul, I am very pleased to be able to report that we have signed a new legally binding agreement with NIEEF that includes a funding undertaking of US$6 million for RHA. Use and application of these funds is expected to see RHA back in production later this year and allows for required upgrades that are expected to result in major operating cost reductions including electricity grid connection. Premier retains ownership of the plant and equipment and is reappointed as the manager for a further 5 years with renewal thereafter. \n \nThe investment from NIEEF will be structured as share capital and Premier will simultaneously capitalise an equivalent amount from Premier's existing loan account. In my opinion, this represents both an equitable solution and a good time for the Zimbabwean Government to invest directly in this project. RHA has been significantly de-risked over the past 4 years and is now an operation that is better understood. \n \nWe have agreed a provisional implementation process with NIEEF and I expect to provide further guidance thereafter.\" \n \nKey terms of the Management Agreement \nThe new MA replaces the old Management Agreement that had been entered into on the 23 September 2013. Premier's 100% owned subsidiary ZimDiv Holdings Limited is appointed as the Manager for a period of 5 years. In particular, the Manager has full authority and responsibility for the day to day operations of RHA.\n \nThe Manager will conduct the operations at RHA in accordance with the general terms and conditions ...