Business
Premier acquires a conditional interest in MNH
Premier acquires a conditional interest in MNH.
About this update from Premier African Minerals Ltd.
[{"type":"text","content":"\n \n \n RNS Number : 1735M\n Premier African Minerals Limited\n 06 May 2020\n \n \n \n \n Premier African Minerals Limited / Ticker: PREM / Index: AIM / Sector: Mining\n \n \n For immediate release\n \n \n \n \n \n 6 May 2020 \n \n \n Premier African Minerals Limited\n \n \n \n \n \n Premier acquires a conditional further interest in MN Holdings Limited \n \n \n \n \n \n The Board of Premier African Minerals Limited (\"Premier\" or the \"Company\") is pleased to announce that it has today agreed to acquire a further 7% in MN Holdings Limited (\"MNH\"), the owner and operator of the Otjozondu Manganese Mining Project (\"Otjozondu\") in Namibia. The purchase consideration of US$700,000 is payable in new Premier shares and is entirely dependent on shareholder approval. On completion, Premier's interest in MNH will increase to 19%.\n \n \n \n George Roach, Chief Executive of Premier commented, \"\n \n This further proposed increase in our holding in MNH is based on the same valuation formula applied to our initial acquisition, effectively an independent valuation of plant and machinery and does not factor any upside into the price calculation. This transaction will require shareholder approval that will be sought at a Special General Meeting (\"SGM\"). \n \n \n Nevertheless, this does represent a more significant stake in what we expect to be a cash generative asset supportive of group overheads in the near future and comes on the back of a sharp increase in the price for manganese. I do expect to update the market soon in regard to developments at RHA and details related to the required SGM\n \n .\n \n \"\n \n \n The Terms of the Sale and Purchase Agreement\n \n \n The Sale and Purchase Agreement (\"Agreement\") is conditional on shareholder consent that will need to be obtained within 30 days from the date of this announcement. Premier intends to convene SGM of shareholders to seek an increase to its authorised share capital to allow the board to proceed with this proposed transaction. \n \n \n The consideration shares will be issued at the higher of the closing share price of the Company prior to the date of announcement of this Agreement or the closing share price of the Company on the day that shareholder approval is obtained to enter into the Agreement (\"Consideration Shares\"). The\n Considerat...