MNH gets N$19m loan for Otjozondu project
By Business Reporter
MN Holdings (MNH), the owner and operator of the Otjozondu Manganese Mining Project in Namibia will access a N$19m ($1.35m) strategic loan from Premier African Minerals and Cambrian to fund the expansion of its operations.
It is understood that the loan with an annual interest of 10%, has a maturity date of 1 October 2021.
The loan proceeds will be specifically used by MNH to buy additional mining fleet and processing equipment, both used and new, from Purity Mining, which has operated in an adjacent area.
“Otjozondu is a producing, revenue generating manganese mine based in Namibia, currently involved in an expansion programme,” commented Premier CEO George Roach.
He indicated that the loan would enable MNH to conclude the purchase of considerable additional plant and equipment from the nearby Purity mine to allow Otjozondu to steadily increase production and revenues.
“I sincerely expect that this loan may lead to a closer relationship in time with Otjozondu that may be in the best mutual interests of both parties.”
An additional immediate benefit to Premier is the appointment of Neil Herbert, the chairperson of Otjozondu, and Peter Cunningham, as consultants to Premier, he indicated.
In due course, Premier intends to invite both to join the board of Premier, subject to the satisfactory completion of standard regulatory checks in compliance with the Aim rules.
“These initial appointments are part of the process of enhancing the company’s executive team and creating opportunities to assist Premier in the restructure and diversification of country and commodity risk I have been discussing and have alluded to for some time now.
“Premier must move from a company dependent on continuous funding through shareholder support to one that can be revenue producing and start to return value to shareholders. Both Neil Herbert and Peter Cunningham have a demonstrable history of just this and I hope that with their assistance and guidance, Premier will progress to this point as well,” said Roach.
Otjozundu is located about 150 km northeast of Windhoek and is in a well-known and established manganese district.
It covers an area of approximately 1,367km² with a strike length of 114km, with only 14km having so far been explored to the point of declaration of a JORC resource.
Otjozundu operations are continuous from a number of open-pits in an owner-miner environment. Necessary processing will be carried out through a crush screen and jig plant. The plant and equipment are owned by Otjozundu.
MNH acquired the Otjozundu project from Shaw River Manganese for N$48.3 million ($3.45m) last year.
The mine currently exports 4,500t of lump ore per month at better than 35% Mn, 54,000tpa, equivalent to approximately than 150,000 dry metric tonne units.