5th Dec 2018 14:08
LONDON (Alliance News) - Premier African Minerals Ltd said Wednesday that it agreed to proceed to a formal framework agreement with KME Holdings Ltd regarding the proposed restructuring of its Zimbabwe minerals projects.
Premier African shares were trading up 20% at 0.14 pence.
The restructuring is now conditional on shareholders' approval.
At the beginning of November, Premier African Minerals said it intended to restructure its Zimbabwe projects and purchase exploration and mining assets owned by KME.
In addition, the mining company said that on completion of the restructuring and acquisition, it planned to demerge its Zimbabwe minerals projects and seek a separate listing for them and the KME assets on a London-based market.
Under the proposed restructuring, Premier African said it will establish a new subsidiary, Newco, into which it will consolidate its entire interests in the RHA tungsten mine and processing plant, Tinde Fluorspar & Barite project, Katete Rare Earths project and the Zulu lithium project.
Premier African agreed to acquire the assets of KME for USD4.0 million, to be satisfied by the issue to KME of new shares in Newco. The acquisition is conditional on Newco raising up to USD6.0 million, in either debt or equity, the company said.
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