Premier African Minerals Limited (LON:PREM) has boosted an already existing interest in Circum Minerals Limited to take its total holding to 2,649,333 Circum shares in aggregate, or 2.7%.
The transaction was satisfied through the issue of 189,491,750 Premier African shares at 0.4p per share for an aggregate consideration of £757,967.
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Circum 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 of 29%.
"Circum's wholly-owned Danakil Potash Project is a tier one, world class asset that will be developed and is expected to afford Premier with a significant liquidity and profit event,” said Premier African’s chief executive George Roach.
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Meanwhile, Premier has also discovered six new pegmatite zones at its Zulu lithium project in Zimbabwe. The company is now looking at further exploration efforts on these new zones to establish the continuation as well depth extensions, following the completion of another 11 drill holes at Zulu.
Zulu currently boasts a resource of 20.1 million tonnes grading 1.06% Li₂O. All of the 11 new drill holes have intersected mineralisation with the best intersection so far of 10m true width with high grade petalite and spodumene mineralisation.