23rd Jan 2015 09:20
LONDON (Alliance News) - Premier African Minerals Ltd Friday said its interest in potash explorer Circum Minerals, is currently valued at USD2.5 million, and said that Cirum's plans to complete its definitive feasibility study in mid-2015 should boost further the value of its interest in Cirum.
Premier African Minerals is a multi-commodity natural resource company with mineral projects in Southern and Western Africa. It also holds a 2.15% stake in potash explorer Cirum Minerals Ltd, a private company which owns the Danakil potash project in the northern margin of the Danakil Depression in Ethiopia.
The company said that Cirum has received a further USD5 million on an exercise of investor warrants which, at the exercise price of USD1.25 per Circum share, values Circum at USD116 million on a fully diluted basis.
Premier said this currently values its interest in Cirum at USD2.5 million, and it expects a further uplift in the value of its interest in Circum. Premier acquired the stake last year and at the time the shares had a fair value of USD1.4 million.
"Should Circum's definitive feasibility study establish the Danakil Project as a potential major world class potash project under development with robust economics as currently anticipated by Circum, then Premier would expect a substantial uplift on the value of its interest in Circum," said Chief Executive George Roach in a statement.
Premier African Minerals said that Circum has completed the road construction, drilling and seismic portion of its feasibility study, while a new updated resource is expected in the first quarter of 2015.
"We believe that the completion of the resource estimate by K-UTEC AG Salt Technologies and the proposed definitive feasibility study should provide an opportunity for Premier to realise its investment at an attractive valuation during the latter part of the course of this year," said Roach.
Premier African Minerals shares were up 5.4% at 0.975 pence Friday morning.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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