7th Nov 2018 13:03
LONDON (Alliance News) - Premier African Minerals Ltd on Wednesday said it intends to restructure its Zimbabwe minerals projects and purchase exploration and mining assets owned by KME Holdings Ltd.
In addition, the mining company said immediately on completion of the restructuring and acquisition, it plans 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 wholly-owned 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 has agreed to acquire the assets of KME for USD4 million, to be satisfied by the issue to KME of new shares in Newco. The acquisition is conditional on Newco raising up to USD6 million, in either debt or equity, the company said.
The distribution of Premier African's interest in Newco on completion of the acquisition, funding and demerger will require the prior approval of Premier shareholders, it said. On completion of the transaction Premier expects that it will then be classified as a cash shell.
"This proposed transaction is intended to accelerate a return to production at RHA and commencement of the work needed to complete the proposed definitive feasibility study at the Zulu lithium project," explained Chief Executive George Roach.
"The further development of Premier's mineral assets are substantially de-risked by the inclusion of KME assets into the Newco thereby allowing for greater potential shareholder value in the long term," added Roach.
Related Shares:
Premier African Minerals