Business
Controlling Interest:Mozambique Limestone Project
Controlling Interest:Mozambique Limestone Project.
About this update from Premier African Minerals Ltd.
[{"type":"text","content":"\n \nRNS Number : 5083W Premier African Minerals Limited 27 April 2016 \n\nPremier African Minerals Limited / Ticker: PREM / Index: AIM / Sector: Mining\n \n \nPremier African Minerals Limited \n(\"Premier\" or the \"Company\")\nAcquisition of Controlling Interest in Mozambique-based Limestone Project \nPlacing to raise £1.1 million\n \n \nSummary\nPremier African Minerals Limited, the AIM-traded, multi-commodity mining and natural resource development company focused on Southern and Western Africa, is pleased to announce that it has agreed terms to conditionally acquire an initial 52% interest in Mozambique-based TCT Industrias Florestais Limitada (\"TCT\"), that owns a substantial limestone deposit located on rail in the Sofala Province of Mozambique. TCT is the holder of the exploration licence together with significant forestry operations. Premier has also today raised £1.1 million (before costs and expenses) through an issue of new Ordinary Shares, at an issue price of 0.75 pence per new Ordinary Share, that funds TCT's projected exploration, operating and development expenditure and the initial cash acquisition costs.\nHighlights\n· TCT's limestone deposit covers 27 km2. \n· The limestone deposit is situated 20 km southwest of Caia. The Tete/Beira rail link, complete with 3-line siding, runs adjacent to the northern boundary of the property.\n· Early test work on surface material indicates acceptable grades of CaCO3 for limestone for cement production; solubility suitable for Agri-lime; and material that is expected to be suitable for aggregates production.\n· Import replacement supports local demand for lime for cement production, agricultural applications and aggregates.\n· TCT's current forestry operations are expected to contribute significantly to exploration and development expenditure funding of the limestone deposit such that after initial capital injection by Premier, TCT is expected to be self-sustaining and contribute positively to Group cash flows in the current year.\n \nGeorge Roach, CEO, commented: \"This is a particularly attractive acquisition both in the upside potential from development of the limestone and the allied operating natural resource business of TCT that is expected to posi...