LONDON (ShareCast) - Shares in Premier African Minerals climbed after the company released an update from part-owned AgriMinco Corp on its Danakil potash deposit.

Premier African holds a 42% stake in Canada-listed firm AgriMinco, which has a 30% stake and is developing the project in partnership with Danakil Corporation.

A study was carried out on the Danakil deposit which showed resources are too deep for an open pit mining method of 200-400 metres.

Mining by conventional underground method was discounted due to a weak structure located between the upper and lower mineralised zones and the perceived risk of flooding.

The Danalil project has a total indicated NI 43-101 resource of 708.8m tonnes at an average grade of 19.49% potassium chloride (KCL).

AgriMinco said: "Whilst the results are encouraging, they must be seen against the backdrop of uncertainty that AgriMinco continues to face due to the difficulties experienced in attempting to raise additional finance and the existing debt burden the company carries. We continue to focus our efforts on completion either of a capital raise or a corporate transaction.”

Premier’s shares rose 3.12% to 0.83p at 16:15 on Tuesday.

RD

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