SHARES in London-listed Premier African Minerals shot ahead as the company concluded an indigenisation agreement with the local authorities for its tungsten arm RHA.
The National Indigenisation and Economic Empowerment Fund (NIEEF) will hold 51% of RHS after the deal, though Premier's subsidiary ZimDiv will manage the project for an initial 5 years.
Premier will convert all expenditure so far into a loan. RHA is also now responsible for all of its own funding and Premier and NIEEF are under no obligation to pay for any of its future exploration and development costs.
Once RHA has moved in to commercial production, Premier will issue US$750,000 worth of shares to NIEFF.
Premier's chief executive, George Roach, said: "The early completion of the agreements is indicative of the excellent relationship and mutual understanding that we have enjoyed with NIEEF for some time now.
"In particular, that RHA is responsible for its own development costs both eases the burden on Premier and broadens the sources from which finance will be available to develop the project into a low-capex tungsten mine in the near-term.
"We are in advanced negotiations on an off-take and project finance and we have committed to the additional confirmatory work suggested in the recently published Mining Study and Preliminary Economic Assessment."