16th Jul 2014 11:32
LONDON (Alliance News) - Premier African Minerals Ltd Wednesday said it has received the second 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 AIM-traded, multi-commodity natural resource company with mineral projects located in western and southern Africa, will now await further payments of USD1 million on September 15, 2014, November 15, 2014, and January 15, 2015.
In May, Circum exercised its exclusive option to acquire the entire issued share capital of Mandalore Development Ltd, a company which holds a 30% interest in the Danakil project and which Premier African bought recently.
The company said at the time that it will now no longer have to repay a USD2.5 million net bridging loan from Circum and will be issued two million new shares in Circum with a present estimated value of USD1.4 million, along with the tranche payments.
Premier African Minerals shares were up 3.8% to 1.06 pence on Wednesday.
By Tom McIvor; [email protected]; @TomMcIvor1
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