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Shareholder Agreement - RHA Tungsten Project, Z...
Shareholder Agreement - RHA Tungsten Project, Z....
About this update from Premier African Minerals Ltd.
[{"type":"text","content":"\n \n Premier African Minerals Limited / Ticker: PREM / Index: AIM / Sector: Mining \n\n30 September 2013\n\n Premier African Minerals Limited (`Premier' or `the Company') \n\n Shareholder Agreement signed with NIEEF for RHA Tungsten Project, Zimbabwe \n\nPremier African Minerals Limited, an AIM quoted multi-commodity natural\nresource company with mineral projects located in Western and Southern Africa,\nis pleased to announce that RHA Tungsten Private Limited (`RHA') has\nsimultaneously concluded a shareholder agreement and a management agreement\nwith the National Indigenisation and Economic Empowerment Fund (`NIEEF'),\nrepresenting and acting for and on behalf of the Government of Zimbabwe (`the\nAgreements'). RHA owns Premier's RHA Tungsten Project in north-west Zimbabwe\n(`the Project'). In accordance with Indigenisation policy, NIEEF will hold 51%\nof the issued share capital of RHA. Significantly, Premier's wholly owned\nsubsidiary, ZimDiv Holdings Limited, which in turn controls the remaining\nequity in RHA, is appointed as the Manager of the Project for an initial 5 year\nterm.\n\nPrincipal terms of the Agreements include:\n\n * Total expenditure incurred by RHA prior to 1 September 2013 will accrue as\n an interest bearing loan due to Premier.\n \n * From 1 September 2013, RHA became responsible for its own funding and\n neither Premier nor NIEEF shall be under any obligation to contribute to\n its exploration and development costs. Premier will provide interim\n assistance for on-going operations until alternative finance is in place.\n \n * Once RHA has obtained sufficient committed finance to enable it to develop\n and construct the mine and the Project has achieved commercial production,\n Premier will issue to NIEEF such number of new ordinary shares of nil par\n value in the capital of Premier as are equal in value, on the basis of a 20\n day volume weighted average price prior to such issue, to US$750,000.\n \n * An Entrenched dividend policy that proportions profit distribution to meet\n agreed debt repayment terms firstly, and thereafter equally to future\n development and dividend payment.\n \nPremier's CEO George Roach commented, \"RHA has been an indigenised Zimbabwean\ncompany since Premier first entered into a letter of intent described in our\nAdmission Document, and the early completion of the Agreemen...