REG - Premier African Min - Joint Venture Agreement

Premier African MineralsAnnouncement

25/04/2022 07:00

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RNS Number : 1319J  Premier African Minerals Limited  25 April 2022

25 April 2022

Premier African Minerals Limited

 

Joint Venture Agreement

Premier African Minerals Limited ("Premier" or the "Company"), is pleased to
confirm that it has signed a binding Joint Venture Agreement ("JV Agreement")
with Li3 Resources Inc. ("Li3 Resources") whereby Li3 Resources will acquire a
50% interest in Premier's hard-rock lithium assets located in the Mutare
Greenstone Belt in Zimbabwe. Premier acquired these claims in June 2020 (see
RNS 10 June 2020). The assets are held by Premier's wholly-owned subsidiary
LicoMex Private Limited (the "Li3 Project").

Highlights:

 

 ·         The Li3 Project holds a number of prospective claim blocks in the Mutare
           Greenstone Belt, an area prospective for lithium and gold.

 ·         This JV Agreement facilitates exploration activities that are funded
           independently of Premier's Zulu Lithium Private Limited operations.

 ·         Li3 Resources has until 31 December 2022 to acquire the 50% interest in the
           Li3 Project by spending US$250,000 in further exploration works.

 

George Roach, CEO commented, "The Li3 Project is located in a region in
Zimbabwe that is receiving significant interest in both Lithium and potential
gold deposits. The claim blocks are well located and, in several instances,
have already attracted interest from international lithium producers. Of
particular importance is that Li3 Resources plans to list on the Toronto Stock
Exchange and this brings to Zimbabwe, widened international interest and
investment.

 

To Premier, this expands our lithium interests in Zimbabwe and whilst
exploration and development at Zulu is independent of the activities of the
Li3 Project, there is bound to be benefit and synergy. Li3 Resources has
indicated that their contribution will be settled in one complete payment and
this is expected imminently."

 

JV Agreement

Li3 Resources has agreed to invest US$250,000 into the Li3 Project for the
ongoing exploration works, environmental and technical studies and any
administrative expenses ("Spend"). Li3 Resources will have until the 31
December 2022 to invest the Spend in order to exercise the option to acquire
the 50% interest in the Li3 Project ("Period").

In the event that Li3 Resources do not meet the required Spend within the
Period, the Option will lapse.

About Li3 Resources

Li3 Resources is a private, lithium focused exploration company founded and
backed by senior mining executives who have had prior success in the lithium
sector. The Li3 Project is the first of a number of targeted lithium
acquisitions by Li3 Resources. The plan is to acquire an attractive portfolio
of highly prospective lithium exploration projects worldwide and then list the
company's shares on a recognised international stock exchange. The Li3
Resources senior management have successfully executed similar transactions
during their past 30 plus year history in the mining sector.

Li3 Project

Premier originally acquired the Li3 Project from Lithium Consolidated Ltd on
28 July 2020. The 1,500 hectares of licences are retained within the Mutare
Greenstone Belt, located close to the eastern border with Mozambique. The area
was deemed prospective for LCT-type pegmatites based on target generation work
completed by Douglas Haynes.

The Mutare Greenstone Belt ("MGB") is an arcuate belt approximately 100km long
with a NE-SW trend. The belt is a syncline made up of ultramafic, mafic and
banded-iron formation of the Bulawayan Group on the flanks, and younger
metasediments of the Shamvaian Group in the core. Granitoid intrusions are
present to both the north and south of the belt.

A number of LCT pegmatites are located within the MGB including the Grand
Duke, Portree and Bepe deposits. The pegmatites have been historically mined
for beryl and tantalite, and several companies in the region are currently
conducting exploration for both tantalite and lithium.

Market Abuse Regulation

The information contained within this announcement is deemed by the Company to
constitute inside information as stipulated under the Market Abuse Regulations
(EU) No. 596/2014 as it forms part of UK Domestic Law by virtue of the
European Union (Withdrawal) Act 2018.

The person who arranged the release of this announcement on behalf of the
Company was George Roach.

Forward Looking Statements:

Certain statements in this announcement are or may be deemed to be forward
looking statements. Forward looking statements are identified by their use of
terms and phrases such as ''believe'' ''could'' "should" ''envisage''
''estimate'' ''intend'' ''may'' ''plan'' ''will'' or the negative of those
variations or comparable expressions including references to assumptions.
These forward-looking statements are not based on historical facts but rather
on the Directors' current expectations and assumptions regarding the Company's
future growth results of operations performance future capital and other
expenditures (including the amount. Nature and sources of funding thereof)
competitive advantages business prospects and opportunities. Such forward
looking statements reflect the Directors' current beliefs and assumptions and
are based on information currently available to the Directors. A number of
factors could cause actual results to differ materially from the results
discussed in the forward-looking statements including risks associated with
vulnerability to general economic and business conditions competition
environmental and other regulatory changes actions by governmental authorities
the availability of capital markets reliance on key personnel uninsured and
underinsured losses and other factors many of which are beyond the control of
the Company. Although any forward-looking statements contained in this
announcement are based upon what the Directors believe to be reasonable
assumptions. The Company cannot assure investors that actual results will be
consistent with such forward looking statements.

Enquiries

 

 George Roach                        Premier African Minerals Limited    Tel: +27 (0) 100 201 281
 Michael Cornish / Roland Cornish    Beaumont Cornish Limited            Tel: +44 (0) 20 7628 3396

                                     (Nominated Adviser)
 John More/Toby Gibbs                Shore Capital Stockbrokers Limited  Tel: +44 (0) 20 7408 4090
 Matthew Bonner                      EAS Advisors LLC                    Tel: +1 646 495 2225

 

Notes to Editors

Premier African Minerals Limited (AIM: PREM) is a multi-commodity mining and
natural resource development company focused on Southern Africa with its RHA
Tungsten and Zulu Lithium projects in Zimbabwe.

 

The Company has a diverse portfolio of projects, which include tungsten, rare
earth elements, lithium and tantalum in Zimbabwe and lithium and gold in
Mozambique, encompassing brownfield projects with near-term production
potential to grass-roots exploration. The Company has accepted a share offer
by Vortex Limited ("Vortex") for the exchange of Premier's entire 4.8 per cent
interest in Circum Minerals Limited ("Circum"), the owners of the Danakil
Potash Project in Ethiopia, for a 13.1 per cent interest in the enlarged share
capital of Vortex. Vortex has an interest of 36.7 per cent in Circum.

 

In addition, the Company holds a 19 per cent interest in MN Holdings Limited,
the operator of the Otjozondu Manganese Mining Project in Namibia.

 

 Glossary
 "Beryl"          A beryllium silicate (Be3Al2(Si6O18)), the most important beryllium ore.
 "Tantalite"      A tantalum oxide ((Mn,Fe)(Ta,Nb)2O6), the most important tantalum ore.
 "LCT pegmatite"  A coarse-grained igneous rock containing economic quantities of lithium ("L"),
                  caesium ("C") and tantalum ("T").
 "Syncline"       A fold in which the core contains the stratigraphically younger rocks; it is

                generally concave upward.

 "Ultramafic"     Igneous rocks that contain more than 90 vol-% mafic minerals are called
                  ultramafic.

Ends

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