Premier African Minerals Limited (LON:PREM) has confirmed it will exit from timber in Mozambique as it focuses on its tungsten and lithium in Zimbabwe and potash in Ethiopia.
The mining junior will try to retain a stake in the limestone assets of TCT Industrias Florestais, which also owns the forestry interests, and talks over this are ongoing.
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Payment to acquire TCT was dependent on timber quotas being assigned and the government in Mozambique has recently suspended timber cutting and export licences.
Without procedural registration of the quotas, Premier said it can potentially walk away from the deal but retain a 50% carried stake in the limestone deposit to completion of an initial exploration programme.
“While the limestone asset of TCT IF remains of continuing interest to Premier, the forestry interests are not material in the ongoing development and strategy of the group,” today’s statement said.