The AIM-listed company said it spent US$200,000 to take its holding in MN Holdings Ltd up from the 10% stake it bought in December.
Premier has satisfied the consideration by issuing 171.07mln new shares at an agreed issue price of 0.09p apiece, totalling £153,967, to MN Holdings owner Nera Consulting Ltd.
“This is another small step on the way to becoming independently cash generative, which will assist in our plans for the restarting of production at RHA Tungsten (Pvt) Limited and in due course, the long-awaited exploration and development of Zulu Lithium,” said Premier’s chief executive George Roach.
“MNH is one of very few Manganese producers able to lay claim to remain cash positive and profitable through the recent fall in Manganese prices, and with the recent reversal and more positive outlook for Manganese, our association with MNH bodes well for the future.”
The Otjozondu mine has increased exporting levels to up to 10,000 tonnes lump ore per month at better than 35%, up from 5,000 per month late last year.
The mine has an exploration target of 30-50mln tonnes grading at 23-27% manganese and in the year to June generated revenues of N$21mln (US$1.43mln).
Premier last week also signed a cooperation agreement with MN Holding for the supply of mining and exploration machinery and for professional assistance with the optimization of the Premier's various mining and exploration operations.
Roach said this was a step towards bringing the RHA Tungsten business “back to life”.