Sign up UNITED KINGDOM
Proactive Investors - Run By Investors For Investors

Premier African reassured by value of stake in Circum

"Projected future value of Premier's holding in Circum Minerals far exceeds Premier's present market capitalisation"
Premier African reassured by value of stake in Circum
Circum has appointed a strategic adviser to help move Danakil forward.

Tungsten group Premier African Minerals (LON:PREM) has raised £112,500 from a single investor to provide more funds underground development work at its RHA mine in Zimbabwe.

The subscription was at 0.375p per shares compared to last night’s close of about 0.45p.

Meanwhile, Premier African has noted an announcement from Circum Minerals, where it has a 2% stake, on progress at the huge Danakil potash project in Ethiopia.

A 25% stake in a smaller deposit to the south of Danakil, Yara Dallo, has recently changed hands at a price that valued Yara at US$200mln. Yara's production is forecast to be just over a fifth of the initial production estimates for Circum's project.

Production at Danakil is expected to be scaleable from its initial estimate of 2.75mln tonnes of potash production per annum, which comprises 2mln tonnes of Muriate of Potash and 750,000 tonnes Sulfate of Potash. Asia, and South East Asia in particular, would be potential markets given their proximity.

Circum has also appointed a strategic adviser to help move Danakil forward.

George Roach, Premier’s chief executive, said: "Projected future value of Premier's holding in Circum Minerals far exceeds Premier's present market capitalisation and does give comfort in management of the debt burden Premier currently carries on behalf of the RHA Tungsten project in Zimbabwe as well as future placements that may be required in getting RHA into profit as we expect in Q1 2016."

PhilW.jpg
Why Invest In Premier African Minerals Ltd? Read More Here

Register here to be notified of future PREM Company articles
View full PREM profile

Premier African Minerals Ltd Timeline

Related Articles

Coal hoppers underground in a mine.
June 01 2016
In the year to date the shares are up 25% and the recent trading update revealed a business reaping the benefits from some wise investments.
Pictured is the Manica mine in Mozambique - today's news concerned a resource upgrade from there...
May 11 2016
The new estimate saw the total resource at Manica raised by 36% to 1.257mln ounces compared to a previous estimate
757z468_royal_road_columbia_project.png
October 26 2015
Tim Coughlin describes it as a "necessary and logical" step

© Proactive Investors 2016

Proactive Investor UK Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.