StockMarketWire.com - Mining group Premier African Minerals said it had agreed to increase an existing loan agreement with Otjozondu Mining.
The increase would be funded via a new loan agreement with chairman Neil Herbert.
Premier had in June provided a $260,000 loan direct to Otjozondu for use at Otjozondu manganese project in Namibia, with a 20% interest rate.
Premier said it had now agreed to extend the existing loan by $180,000, thus increasing the total amount to $440,000.
'Otjozondu has contemplated for some time now a change in the existing off take partner and the payment terms,' chief executive George Roach said.
'The existing contract is subject to a 90-day notice period and appropriate notice has now been given.'
'This allows both Premier and Otjozondu to proceed with alternative negotiations intended to improve the existing arrangements and to secure advance funding to support planned expansions in mining operations.'
'On receipt of notice, the existing offtake partner has varied the previous trade terms, and this results in a delay in settlement.'
'The loan supports this and is expected to be of a short-term nature.'
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