Premier African Minerals Ltd (LON:PREM) said it will ask shareholders to approve the sale of its interest in Circum Minerals as part of a possible fundraise.
Circum, in which Premier owns more than 5mln shares worth US$6.2mln, is looking to raise funds through a combination of debt and equity to support the development of the Danakil potash project in Ethiopia.
It needs to raise more than US$6.2mln, which is Premier’s entire holding in Circum.
If that route to financing goes ahead, Premier would hold a general meeting to ask shareholders to approve the disposal of its interest in Circum.
Premier said it would repay all existing debts and liabilities incurred in the ordinary course of business if the disposal is approved.
Shareholders will be also be asked whether they prefer to have the proceeds of the sale distributed to them through dividends and share buybacks or to allow Premier to retain the money to invest in existing and new projects.
“The board of Premier is committed to ensuring that the management of the Circum Interest is conducted transparently and efficiently,” the company said.