BVI-registered Premier African Minerals Limited, jointly with Cambrian Limited, announced a strategic loan to MN Holdings Limited, the owner and operator of the Otjozondu Manganese Mining Project in Namibia, for a total amount of US$1.35mln with annual interest of 10% and with a maturity date of 1 October 2021. By this loan, Premier African expands into an operating and revenue generating manganese mining operation.
George Roach, CEO of the BVI company, said in his comments: "Otjozundu is a producing revenue generating manganese mine based in Namibia currently involved in an expansion programme. The loan to Otjozundu will enable it to conclude the purchase of significant additional plant and equipment from the nearby Purity Mine to allow Otjozundu to steadily increase production and revenues.”
The Otjozundu Manganese Mining Project is located some 150 kilometres north east of Windhoek and is in a well-known and established manganese district. Otjozundu is wholly owned by MNH, which acquired the project from Shaw River Manganese Limited for A$4.952 million in 2018.
The loan proceeds will be specifically used by MNH to purchase additional mining fleet and processing equipment from Purity Mining which has operated in an adjacent area.
In accordance with the Loan Agreement, Cambrian has already provided US$350,000 in cash to MNH and Premier African will provide the remaining US$1 million (as Lender) in the form of 1,763,668,430 new ordinary shares of the company.
Thursday, July 11, 2019
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