Premier African Minerals Limited Circum Minerals Update (8680M)
October 18 2016 - 10:22AM
UK Regulatory
TIDMPREM
RNS Number : 8680M
Premier African Minerals Limited
18 October 2016
Premier African Minerals Limited / Ticker: PREM / Index: AIM /
Sector: Mining
For immediate release
18 October 2016
Premier African Minerals Limited
("Premier" or the "Company")
Circum Minerals Update
Premier African Minerals Limited (AIM: PREM), the London quoted
mining exploration and production company, is pleased to announce
that it has received a shareholder update from Circum Minerals
Limited ("Circum" or "the Company") in which Premier holds 2
million shares, equivalent to approximately 2% shareholding. In its
update, Circum Management reaffirmed its belief that:
-- The wholly-owned Danakil project is a unique and world-class
potash project with one of the largest potash resources in the
world.
-- The project features lowest quartile industry operating costs for both SOP and MOP.
-- The project will be able to deliver substantial production to
the Asian market at the lowest cost per tonne of any producer.
Circum's update further stated that:
-- The optimized after-tax NPV (at a 10% discount rate) amounted
to US$2.1 billion and nominal IRR amounts to 26%.
-- The mining licence agreement negotiation is well advanced and
Circum expects this to be completed before year end.
-- Morgan Stanley is running a process to help find a strategic
partner for Circum and/or provide a liquidity alternative to
shareholders.
-- Whilst current events in Ethiopia may have slowed the
process, Circum continues to engage with interested parties and
also contemplates a possible flotation on an appropriate
exchange.
For further detail in regard to this project, please refer to
www.circumminerals.com.
George Roach, Premier's CEO, commented:
"This project is a very valuable asset and it is encouraging to
see that Circum has made considerable progress in developing the
project. In value comparative terms, the much smaller Yara project
to the south of Circum was recently funded on a valuation of US$200
million (i.e. equivalent to Circum at $2 per Circum share). It is
reasonable to conclude that Circum is likely to achieve a
significantly higher value on its much bigger project."
Forward Looking Statements:
Certain statements in this announcement, are, or may be deemed
to be, forward looking statements. Forward looking statements are
identi ed by Circum's use of terms and phrases such as "believe",
"could", "should" "envisage", "estimate", "intend", "may", "plan",
"will" or the negative of those, variations or comparable
expressions, including references to assumptions. These forward
looking statements are not based on historical facts but rather on
the Directors' current expectations and assumptions regarding the
Company's future growth, results of operations, performance, future
capital and other expenditures (including the amount, nature and
sources of funding thereof), competitive advantages, business
prospects and opportunities. Such forward looking statements re ect
the Directors' current beliefs and assumptions and are based on
information currently available to the Directors. A number of
factors could cause actual results to differ materially from the
results discussed in the forward looking statements including risks
associated with vulnerability to general economic and business
conditions, competition, environmental and other regulatory
changes, actions by governmental authorities, the availability of
capital markets, reliance on key personnel, uninsured and
underinsured losses and other factors, many of which are beyond the
control of the Company. Although any forward looking statements
contained in this announcement are based upon what the Directors
believe to be reasonable assumptions, the Company cannot assure
investors that actual results will be consistent with such forward
looking statements.
This announcement contains inside information for the purposes
of Article 7 of EU Regulation 596/2014.
Enquiries:
Premier African Minerals Tel: +44 (0)7734
Fuad Sillem Limited 922074
---------------------- --------------------------- ------------------
Michael Cornish Beaumont Cornish Tel: +44 (0) 207
/ Roland Cornish Limited 628 3396
(Nominated Adviser)
---------------------- --------------------------- ------------------
Jerry Keen/Edward Shore Capital Stockbrokers Tel: +44 (0) 207
Mansfield Limited 408 4090
---------------------- --------------------------- ------------------
Charles Goodwin/Aidan
Stanley /Dominic Yellow Jersey PR Tel: +44 (0) 7584
Barretto Limited 085 670
---------------------- --------------------------- ------------------
Notes to Editors:
Premier African Minerals Limited (AIM: PREM) is a
multi-commodity mining and natural resource development company
focused in Southern and Western Africa with production started at
its flagship RHA project in Zimbabwe.
The Company has a diverse portfolio of projects, which includes
tungsten, rare earth elements, gold, lithium and tantalum in
Zimbabwe and Benin, encompassing brownfield projects with near-term
production potential to grass-roots exploration. The Company also
holds 2 million shares in Circum Minerals Limited ("Circum"), the
owners of the Danakil Potash Project in Ethiopia, which has the
potential to be a world class asset. At present those shares are
valued at US$4 million based on the latest price at which Circum
has accepted subscriptions.
Glossary
MOP: Muriate of Potash
SOP: Sulphate of Potash
ENDS
This information is provided by RNS
The company news service from the London Stock Exchange
END
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October 18, 2016 10:22 ET (14:22 GMT)