12th Jan 2015 10:26
LONDON (Alliance News) - Premier African Minerals Ltd Monday said it has received the fifth and final tranche of USD1 million from Circum Minerals Ltd as part of a deal in which Circum bought its stake in the Danakil potash project in Ethiopia for cash and shares.
The payment is the last to be made under the deal which was agreed in May 2014.
In May, Circum exercised its exclusive option to acquire the entire issued share capital of Mandalore Development Ltd, a company which held a 30% interest in the Danakil project and was owned by Premier African. Following the deal, Circum now owns the entire property.
When the deal was secured in May, Premier African said it would no longer have to repay a USD2.5 million net bridging loan from Circum and was issued two million new shares in Circum along with the tranche payments.
Premier African shares were down 3.9% to 0.985 pence per share on Monday morning.
By Joshua Warner; [email protected]; @JoshAlliance
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