Business
Proposed sale of Mali Subsidiary
Proposed sale of Mali Subsidiary.
About this update from Premier African Minerals Ltd.
[{"type":"text","content":"\n \n Premier African Minerals Limited / Ticker: PREM / Index: AIM / Sector: Mining \n\n30 January 2013\n\n Premier African Minerals Limited (`Premier' or `the Company') \n\n Proposed sale of Mali Subsidiary \n\nPremier African Minerals Limited, the AIM quoted multi-commodity natural\nresource company with mineral projects located in Western and Southern Africa,\nis pleased to announce that it has entered into a non-binding Memorandum of\nUnderstanding (`MOU') for the sale of the Company's Mali subsidiary, G and B\nAfrican Resources Mali SARL (`Mali Sub') to Ethiopian Potash Corp. (`EPC') (TSX\nVenture: `FED'), an Ethiopian focussed potash company. The sale would be\nsatisfied by the issue of 20,000,000 new shares in EPC. Mali Sub holds certain\nrights to acquire exploration licences in Mali, primarily prospective, for\npotash. The Board of Premier stated that it was reviewing opportunities to\nrealise the value of its Mali project and operations in its Admission Document\ndated 4 December 2012.\n\nThe MOU includes a number of complex transactions that are subject to final\nagreement by all parties and in some instances approval by the Toronto Stock\nExchange (TSX) and EPC shareholders. Further details of the MOU can be found in\nthe press release of EPC to be found on its website at www.ethiopianpotash.com.\n\nConditions precedent will include, among other things, due diligence, the\nexecution of mutually satisfactory definitive agreements among the parties and\nobtaining all required approvals, including but not limited to TSXV and\nshareholder approvals, and there can be no certainty that the contemplated\ntransactions will close.\n\nGeorge Roach, Premier CEO said, \"This transaction allows Premier to retain\nexposure to the Mali Sub properties and gain exposure to the highly prospective\nDanakil Property in Ethiopia through its shareholding in EPC, whilst avoiding\nthe significant exploration expenditure required to quantify the projects'\npotential. Furthermore, Premier is now able to acquire listed securities in the\nform of 20m EPC shares. Consequently, this transaction underlines our ability\nto source projects and crystallise value through either development or a\ncorporate transaction for the benefit of our shareholders.\n\n\"On a wider level, we continue to implement our business strategy of building\nshareholder valu...