Premier African Minerals' option exercise to fund Kamativi

Premier African Minerals' option exercise to fund Kamativi
Published: 13 May 2014
London Stock Exchange listed commodity firm Premier African Minerals has exercised an option to acquire Toronto-listed AgriMinco's entire interest in its subsidiary Mandalore Development, which has a 30 percent interest in the Danakil potash project, in Ethiopia.

According to Premier chief executive officer George Roach, the acquisition will help the company develop its flagship RHA Tungsten project in Zimbabwe in which it has a 49 percent stake in.

The Zimbabwean Government holds the remainder.

“The exercise of the option, without the need to access the capital markets in the near term, provides Premier with a significant asset that is intended to be acquired by Circum.

As a consequence, Premier African Minerals' normal operating costs can be funded into the foreseeable future without the need for further immediate dilution to shareholders.

"As well as retaining a significant interest in the Danakil Potash Project going forward via our ownership of 2 million shares in Circum, these incoming funds will allow us to progress our flagship RHA Tungsten development in Zimbabwe," said Roach in a statement, while commenting on the option exercise yesterday.

The acquisition consideration was estimated, on present pricing, to be C$4.3-million.

To make up this consideration Premier would cancel all the common shares it held in AgriMinco - which was currently 120 million shares, representing 42 percent of the company's issued share capital at a value of C$1,8 million - for no consideration. Premier would also settle a portion of AgriMinco's debt obligations up to C$1,5 million and issue C$1 million worth of premier ordinary shares to the group.

Premier African Minerals Limited is a multi-commodity exploration and development company focused on Southern and West Africa.

The company has a diverse portfolio of multi-commodity projects which includes tungsten, rare earth elements, gold, lithium, tantalum and uranium in Zimbabwe and Togo, which span from brownfield projects with near-term production potential to grass-roots exploration.
- BH24
Tags: Kamativi,

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