Business
Premier Acquires Milestone Stake in Circum
Premier Acquires Milestone Stake in Circum.
About this update from Premier African Minerals Ltd.
[{"type":"text","content":"\n \nRNS Number : 7167O Premier African Minerals Limited 23 August 2017 \n\nPremier African Minerals Limited / Ticker: PREM / Index: AIM / Sector: Mining\nFor immediate release\n23 August 2017\nPremier African Minerals Limited \n(\"Premier\" or the \"Company\")\nPremier Acquires Milestone Stake in Circum \n \nSummary\nPremier African Minerals Limited, the AIM-traded, multi-commodity mining and natural resource development company focused in Southern and Western Africa is pleased to announce that it has today conditionally agreed to acquire from Sabona Investment Limited SA (\"Sabona\") an additional interest of 908,334 shares in Circum Minerals Limited (\"Circum\"), (representing 1 per cent. of the issued share capital of Circum) at a value of US$1.50 per Circum share for an aggregate consideration of US$1,362,501.00 (\"Purchase\"). Following completion of the Purchase, Premier's holding in Circum will amount to 5,010,333 Circum shares in aggregate, representing 5.2 per cent, of issued share capital of Circum. \n \nThe Company has satisfied the consideration due through the issue to Sabona of 236,166,840 new ordinary shares (\"New Shares\") at yesterday's closing bid price of 0.45p per share for an aggregate consideration of £1,062,750.78. The New Shares will, when issued rank pari passu in all respects with the existing shares. The Application will be made for the New Shares to be admitted to trading on AIM and admission is expected to take place on or around 29 August 2017.\n \nCircum is a privately-owned potash development company which operates the Danakil Potash project in Ethiopia. Circum has published an optimised DFS which reports a pre-tax net present value (\"NPV\") for the Danakil Potash project of US$2.8 billion and a pre-tax nominal internal rate of return (\"IRR\") of 29 per cent. The after-tax NPV and nominal IRR were US$2.1 billion and 26 per cent, respectively.\n\nGeorge Roach, CEO commented, \"With this purchase, Premier has achieved a meaningful interest and a substantial addition to our asset base. At the same time, there are several potentially significant developments that the Board is reviewing. These include, a possible partnerships and/or the sale of Premier's TCTIF forestry interest whilst ensuring that Premier maintain an interest in the limestone deposit, the appoin...