Premier locks in first-buy option for Danakil play
JOHANNESBURG (miningweekly.com) – Aim-listed Premier African Minerals has entered into an option agreement with Toronto-listed AgriMinco, granting the multicommodity natural resources group the exclusive option to buy AgriMinco's 30% interest in the Danakil potash project, in Ethiopia.
On exercise of the agreement, which, on present pricing, was valued at C$4.9-million, Premier would acquire the entire issued share capital of Mandalore Development, a wholly owned subsidiary of AgriMinco, which owned a 30% interest in the project.
In return, Premier would cancel all the common shares it held in AgriMinco for no consideration, settle a portion of AgriMinco’s debt obligations up to C$1.5-million and issue C$1-million worth of premier ordinary shares to the group.
Premier currently held 120-million AgriMinco shares, representing 42% of the company and boasting a value of some C$2.4-million.
Commenting on the transaction, Premier CEO George Roach said the company had engaged in “advanced negotiations” to provide the necessary finance to exercise this option and, in so doing, placed Premier in a position to monetise the whole or a portion of this asset.
While the agreement was exercisable by Premier at its sole discretion on or before April 30, it remained subject to approval by the TSX Venture Exchange.
The Danakil project, which encompasses a potentially significant potash deposit in the Danakil depression of Ethiopia, is comprised of two leases with a combined area of about 365 km2.
Earlier this week, AgriMinco announced a further update on the project, including an expansion of its indicated mineral resource estimate to 708.8-million tons at an average grade of 19.4% potassium chloride (KCl), resulting in 137.6-million tons of contained KCl.
Comments
Research Reports
Projects
Latest Multimedia
Latest News
Showroom
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation
