5th Jun 2015 12:22
LONDON (Alliance News) - Premier African Minerals Ltd Friday said it has produced its first concentrate from its flagship RHA tungsten project in Zimbabwe, in which it holds a 49% stake.
The miner said the first coarse grade concentrate have been produced, with fine concentrate production expected to follow "in the next few days". Coarse grade production will represent around 75% of total production from the project, it said.
"I am delighted to be able to report the production of the first wolframite concentrates from the RHA mine. Following achievement of this milestone on time, fine tuning and optimisation is ongoing and we look forward to achieving our next milestone of first shipments in the near future," said Chief Executive George Roach.
Premier African has also drawn-down the third tranche of financing provided by Darwin Strategic Ltd after the process plant and equipment for the RHA tungsten mine were delivered to the site. The company has drawn-down a further GBP450,000.
Darwin has also converted the remaining GBP600,000 zero coupon senior unsecured convertible loan notes into equity. The notes were converted at the maximum price possible under the agreement at 1.35 pence, resulting in Premier African issuing over 44.4 million new shares.
YA Global Masters SPV Ltd, the holder of 9.0 million Premier African warrants has also exercised its rights in full, paying GBP112,500 to convert all the warrants at a price of 1.25 pence.
"The exercise of warrants is a welcome expression of confidence in Premier, and this, together with the release of the final tranche of funding from Darwin, is most satisfying," Roach said.
Premier African shares were down 7.9% to 2.90 pence per share on Friday afternoon.
By Joshua Warner; [email protected]; @JoshAlliance
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