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Agreement signed for sale of Togo and Mali Proj...
Agreement signed for sale of Togo and Mali Proj....
About this update from Premier African Minerals Ltd.
[{"type":"text","content":"\n \n Premier African Minerals Limited (`Premier' or `the Group') \n\n24 May 2013\n\n Formal agreement signed for sale of Togo Phosphate and Industrial mineral \n assets. Amendments to previously announced sale of Mali Subsidiary \n\n Related party transactions \n\nPremier African Minerals Limited, the AIM quoted multi-commodity natural\nresource company with mineral projects located in Western and Southern Africa,\nannounces that, further to the press release of 22 April 2013 relating to the\nacquisition by Ethiopian Potash Corp. (`EPC') (TSX Venture: `FED'), of\nPremier's Mali subsidiary G and B African Resources Mali SARL (`Mali Sub'), on\n23 May 2013, the Group has entered into a further agreement (`Togo Agreement')\nwith EPC for the sale of its Togo subsidiary, G and B African Resources SARL\n(`Togo Sub'), and has concluded certain amendments to the sale agreement (\"Mali\nAgreement\") relating to the sale of the Mali Sub as part of the same\ntransaction (together `the Combined Transaction'). The required amendment to\nthe Mali Agreement arose from a TSX requirement that the 20 million EPC shares\nto be issued in satisfaction of the purchase price of the Mali Sub be escrowed\npending satisfactory completion of a NI43-101 compliant Technical Report that\nrequires a site visit by the Competent Person. The visit will occur when the\npolitical situation in Mali has stabilised, provided that visit occurs within\n12 months.\n\nThe sale of the Togo Sub includes the Southern Togo Phosphate and Clays Project\nand the Group's Bassar Phosphate Project as described in Premier's AIM\nadmission document dated 10 December 2012. The Togo Sub's Dapaong Gold Project\nin Northern Togo and its Benin branch, which has applications in for Coltan and\nCassiterite are not included in the Combined Transaction and will remain 100%\nowned by Premier.\n\nConsideration\n\nUnder the revised terms for the Combined Transaction the consideration due to\nPremier will be satisfied by the issue of 120,000,000 new shares in EPC.\nPremier will become a Control Person under the rules of the TSX which requires\nthat EPC shareholders consent is given. The value of the consideration is C$2.4\nmillion based on the EPC midmarket price of C$0.02 at close of business on the\n21 April 2013, the day before the trading halt requested by EPC in advance of\nthe press releas...