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Premier African: Zimbabwe proposes US$6M investment in RHA tungsten mine

Premier African Minerals Ltd.'s share price rose about 18% on March 13 after disclosing that the Zimbabwean government proposed a US$6 million investment in the RHA tungsten mine, which has been closed since January 2018 due to the lack of funds.

Premier African owns 49% of RHA, while the government's National Indigenisation and Economic Development Fund holds the remaining 51%.

In December 2018, the government expressed willingness to inject funds into the mine, pending some clarification on Premier's involvement and restructuring of RHA Tungsten Pvt. Ltd. Premier is planning to consolidate its interests in RHA as well as its other projects in Zimbabwe into a new, wholly owned subsidiary.

The amount would be used for the immediate recommissioning of the mine, subject to the appropriate agreements. Premier also said its Zimdiv Holdings Ltd. unit will also be awarded a contract extension to manage the mine.