9th May 2014 09:27
LONDON (Alliance News) - Premier African Minerals Ltd Friday said AgriMinco Corp has received approval for its proposed sale to Premier of its interest in the Danakil potash project in Ethiopia.
The AIM-traded, multi-commodity natural resource company with mineral projects located in western and southern Africa, said AgriMinco received approval from the TSX venture exchange to sell its entire interest in Mandalore Developments Ltd, which has a 30% interest in the Danakil potash project.
On March 20, Premier entered into an option agreement with AgriMinco, whereby AgriMinco granted it the exclusive option to purchase 100% of the shares of Mandalore, AgriMinco's wholly-owned subsidiary that holds its stake in the Danakil Potash project.
Premier said last week that the option strike price is CAD4.9 million and will comprise the settlement of up to CAD1.5 million of AgriMinco?s debts, the issue of CAD1.0 million of Premier shares to AgriMinco, and the cancellation of Premier?s interest in AgriMinco.
The company also reported that all conditions for an interest free, term loan of USD2.5 million from Circum Minerals Ltd have been satisfied, allowing it to exercise the option deal if it chooses to.
Premier African Minerals shares were down 1.4% to 0.961 pence Friday.
By Tom McIvor; [email protected]; @TomMcIvor1
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