23rd Nov 2016 10:10
LONDON (Alliance News) - Premier African Minerals Ltd on Wednesday said it has appointed African Mining & Exploration as the main mining contractor for the RHA tungsten mine in Zimbabwe.
African Mining & Exploration will handle upgrades, development of the underground operations, and re-establishment of open pit mining at the site, Premier African said. It will pay Afmin USD50,000 in one-off mobilisation costs, followed by two milestone payments of USD75,000 each.
Premier African said the contract calls for the delivery of a minimum of 12,000 tonnes of mined material at a fixed cost per tonne, with incentives to reduce the final processed cost per tonne.
"The development of RHA is progressing well and the Afmine team successfully mobilised and commenced works on site. Afmine has a reputation for safety and efficiency and, inter alia is contracted to some of the major mining houses within Zimbabwe," said Premier African Chief Executive George Roach.
Separately on Wednesday, Premier African said Darwin Strategic Ltd exercised an option to convert GBP250,000 worth of loan notes into Premier African shares.
Premier African has issued 79.4 million shares at 0.314874 pence per share to Darwin under the convertible loan note agreement between the two.
Premier African shares were down 8.7% to 0.343 pence on Wednesday.
By Sam Unsted; [email protected]; @SamUAtAlliance
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