LONDON (ShareCast) - (ShareCast News) - Premier African Minerals agreed to acquire an additional interest in Circum Minerals from Sabona Investment.


The AIM listed company said it would acquire a further 1% of Circum, a privately owned potash development company operating the Danakil Potash project in Ethiopia, at a value of $1.50 per share, for an aggregate consideration of $1.36m.

Application would be made for new shares to be admitted to trading on AIM on or around 29 August 2017.

Following the transaction, Premier would be left holding a total of 5m Circum shares, representing 5.2% of that company's capital.

Souther and Western Africa-focused Premier said it had already satisfied the share-based part of the consideration due through the issue to Sabona of 236m new ordinary shares for a total amount of £1.06m at the previous session's bid price of 0.45p per share.

George Roach, Premier's CEO, highlighted how the transaction would improve African's asset base.

Circum's definitive feasibility study for the Danakil Potash porject pegged its ore-tax net present value at $2.8bn with an internal rate of return of 29%.

On a separate note, he added that there were several "potentially significant" developments that the Board was also reviewing.

Those, he said, included "possible partnerships and/or the sale of Premier's TCTIF forestry interest whilst ensuring that Premier maintain an interest in the limestone deposit, the appointment of Bara Consulting to conduct a preliminary economic assessment of Zulu Lithium and Tantalum project, commissioning of an independent review of the shaft systems and underground development at RHA that is required to support the projected through put from later in Q4 2017 and a review of plant operational maintenance necessary at RHA."

The company's shares were down -5.26% to 0.45p by 09:35 BST.

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