PREMIER AFRICAN MINERALS (LON:PREM)
SECTOR – MINING
RATING – CORP*
MARKET CAP – £22m
CURRENT PRICE – 0.4p
Potential sale of TCT interest
NORTHLAND VIEW
Premier African Minerals is reviewing possible partnerships and/or sales of its TCT IF forestry interests while ensuring that it maintains an interest in the limestone deposit.
The consideration due to the original vendors of TCT IF is only due following final procedural registration of the assignment of quotas by the Mozambique authorities and, as this registration remains outstanding, this provides an opportunity for the Company to potentially novate its rights and obligations under the acquisition agreements whilst still retaining a free carried 50% interest in the limestone deposits to completion of the initial exploration programme and without cost.
By focusing on the development of the Zulu Lithium Project and RHA Tungsten Mine, Prem believes it can generate greater value for its shareholders. The Company also plans to increase its interest in Circum Minerals which owns the Danakil Potash Project, located in Ethiopia. Prem continues to believe in the potential of the limestone asset of TCT but the forestry interests do not fit with the Company’s strategy going forward, a view supported by the recent country-wide suspension of timber cutting and export licences in Mozambique.
COMPANY DESCRIPTION
Premier African Minerals is a multi-commodity exploration and development company with assets located across Africa. Its principal asset is a 49% operator interest in the RHA Tungsten Mine located in Zimbabwe. It has also recently acquired a Limestone and Forestry business located in Mozambique.