Zim tungsten project gets £3.5m boost

Published: 04 October 2017

Implementation of the Bulawayo-based RHA Tungsten project has received a major boost after diversified miner Premier African Resources raised £3,5 million for the project.

The RHA Tungsten mine is 49 percent owned by junior resources exploitation firm Premier Africa Resources.

The resources firm said it has raised £3,5 million at 0,3 pence per share in a fund-raise through PrimaryBid.com that received a strong response.

The offer was on a first come, first served basis.

Said Premier CEO Mr George Roach:

"The primary purpose of this placement was to settle the existing loan note and repurchase the shares issued under the swap agreement, and I am pleased to report that t will be settled immediately.

"Underground development is fully funded and our team at RHA is confident that the minimum required tonnage at grade will be delivered to the plant during the latter part of Q4 to assure profitable operations. No further capital raise is anticipated or expected for RHA."

The offer was closed at 5:00 pm on Sunday.

The capital raise comes in the wake of an announcement by Premier management last month that theRHA Tungsten Project had received an upgrade and increase in respect of its underground mineral resource estimate.

The resource upgrade highlighted the following upturns: a 32 percent rise in the underground Measured Resource category to 0,029 million tonnes and a 52 percent increase in grade to 5,45 kilogram (kg) WO3 per tonne.

Underground Indicated Resource category increased by 33 percent to 0,076 million tonnes as well as a 95 percent increase in grade to 6,31kg WO3 per tonne.

Also noted was an 11 percent increase in overall underground grade to 4,72kg WO3 per tonne and 16 percent increase in total underground Mineral Resources contained metal to 6 257 493 kg WO3.
- BH24