Premier terminates Zimbabwe acquisition

Premier terminates Zimbabwe acquisition
Published: 24 April 2019
PREMIER African Minerals (Premier) says it has terminated its proposed acquisition of a 50 percent stake of KME Plant and in Honey Badger Resources (HBR) due to ongoing uncertainty over the future of its RHA tungsten mine.

George Roach, the Aim-listed company's chief executive, yesterday said the $3,7 million sale which was meant to be settled in Premier shares then combined with its own Zimbabwean assets before seeking their listing on the London market would not proceed.

"Premier announces that following the announcement on February 14, 2019, which outlined the proposed conditional acquisitions of 50 percent of KME Plant Limited and 50 percent of the equity in HBR, Premier will now not proceed with either transaction until there is some finality on the future of RHA Tungsten (Private) Limited," he said

"Premier notes that pursuant to our announcement on March 13, 2019, the final agreements are with the office of the ministry of Industry, Commerce and Enterprise Development and Premier now awaits final sign-off," he said.

HBR already has a resource greater than 500 000 ounces and a further internal resource in a semi-developed and previously mined deposit.

Last month, the Zimbabwe government proposed a US$6 million investment in RHA tungsten mine, but this is still awaiting final sign-off from the Industry, Commerce and Enterprise Development ministry.

This comes as the resource-focused group had announced that it had hit multiple high-grade intersections in an update on its drilling programme at the RHA tungsten mine, in which it holds a 49 percent stake.

In 2017, Premier secured over £1 million for optimisation of the RHA project ? located approximately 270 kilometres northwest of Bulawayo and made up of 50 mineral claim blocks ? through a direct subscription for new ordinary shares to raise £1 020 000 before costs, with the placing having been undertaken within the company's existing share authorities.

As a result of the announcement, Premier's share has maintained a bullish momentum since mid-morning on Christmas Eve.

Premier has a diverse portfolio of projects, which include tungsten, rare earth elements, lithium and tantalum in Zimbabwe, encompassing brownfield projects with near-term production potential to grass-roots exploration.

In addition, the company holds five million shares in Circum Minerals Limited, the owners of the Danakil Potash Project in Ethiopia, and also has an interest in Arc Minerals that has a number of mineral assets in Europe and Africa.
- dailynews
Tags: Premier,


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