Premier African Minerals has received a shareholder update from Circum Minerals in which Premier holds 2 million shares, equivalent to approximately 2% shareholding.
In its update, Circum Management reaffirmed its belief that:
- The wholly-owned Danakil project is a unique and world-class potash project with one of the largest potash resources in the world.
- The project features lowest quartile industry operating costs for both SOP and MOP.
- The project will be able to deliver substantial production to the Asian market at the lowest cost per tonne of any producer.
Circum's update further stated that:
- The optimised after-tax NPV (at a 10% discount rate) amounted to US$2.1 billion and nominal IRR amounts to 26%.
- The mining licence agreement negotiation is well advanced and Circum expects this to be completed before year end.
- Morgan Stanley is running a process to help find a strategic partner for Circum and/or provide a liquidity alternative to shareholders.
- Whilst current events in Ethiopia may have slowed the process, Circum continues to engage with interested parties and also contemplates a possible flotation on an appropriate exchange.
At 3:45pm: (LON:PREM) Premier African Minerals share price was +0.03p at 0.43p