Govt provides $2,5m for RHA Tungsten project

GOVERNMENT has provided ZWL$2,5 million (US$108,806 at official bank rate) in interim funding to meet holding and security costs at RHA Tungsten project in Hwange.

Premier African Minerals group chief executive officer, Mr George Roach, revealed this in a statement in which he announced the company’s conclusion of a US$290 000 investment agreement with its partners.

“I am pleased to note that the Ministry of Commerce and Industry in Zimbabwe has indicated that whilst they cannot conclude the negotiation in regard to RHA under the Covid-19 lockdown, they have nevertheless provided RTGS $2,5 million (equivalent to US$ 108 806 at the official bank exchange rate), in interim funds that are adequate to cover holding and security costs at RHA for an extended period,” he said.

“I am deeply appreciative of this gesture and will comply with the request that further action be stayed at this moment.”

Last year, Premier signed an agreement with the National Indigenisation and Economic Empowerment Fund (NIEEF) that would see Government advancing $6 million to commence production at the RHA Tungsten project. The Zimbabwe focused mining group holds 49 percent in RHA Tungsten mine while the Government, through NIEEF, controls 51 percent.

Meanwhile, Premier has entered into a secured US$290 000 investment agreement before cost with D-Beta One EQ Limited, YA II PN Limited and Riverfort.

The annual interest rate payable on the outstanding investing amount is 10 percent.

“This agreement provides a further cash buffer as we approach finality in regard to both our EPO application at Zulu Lithium (Pvt) Limited and the ongoing negotiations at RHA in Zimbabwe,” said the group.

Early this year, the mining firm announced that NIEEF was re-evaluating its ongoing involvement in the RHA Tungsten project. Following a site visit to the RHA Tungsten project by Industry and Commerce Minister Dr Sekai Nzenza, on behalf of NIEEF, in March this year Premier made submission of revised cost estimates, denominated in local currency, for RHA and other planned projects. —chronicle.co.zw

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