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Premier African Minerals Ltd. (LSE:PREM) announced that a Zimbabwe-based banking institution has offered direct finance for the RHA tungsten mine. Premier is the operator of RHA and holds a 49-percent stake in the mine.

As quoted in the press release:

As part of the continuing preparations in respect of underground ore processing, RHA has increased its working capital facilities with a US$200,000 general credit facility from a local bank, which may be utilised for payment of direct operating expenses associated with the production of wolframite concentrates. The facility bears interest at the bank’s costs of funds plus a margin of 8.75% and is guaranteed by Premier. The on-demand facility is for an initial term until 31 October 2016.

George Roach, CEO and chairman of Premier, commented:

It is most encouraging that a local banking institution has a level of confidence in RHA such that they are prepared to extend a facility for normal working capital requirements linked to shipment of concentrates. Historically, Premier has met 100% of all expenses incurred by RHA.

• [Editor:Sophie]