Following a range of transactions during the first half of this year, including its 30% sale of the Danakil potash project, in Ethiopia, Aim-listed Premier African Minerals would be adequately funded for the foreseeable future, Premier executive chairperson and CEO George Roach said on Thursday.

In a series of transactions, Premier first acquired, by way of the exercise of an option granted by AgriMinco, a 30% interest in Danakil and then subsequently sold on that same interest to Circum.

In terms of these transactions, Premier relinquished its 42% interest in AgriMinco, financed the liquidation of certain secured debt due by AgriMinco and issued C$1-million worth of new Premier shares to AgriMinco.

Subsequently, Premier also secured net cash proceeds from Circum of $5-million, along with a shareholding in Circum with a nominal value of $1.4-million.

“With the expectation of being in a strong cash position, we believe we can look forward to advancement of our prime assets,” Roach said.

The company’s prime projects included the RHA tungsten mine, in Zimbabwe, for which Premier was currently reviewing low capital options that could result in earlier production.

Meanwhile, Premier was also considering the establishment of a pilot plant at its Zulu pegmatite project, in Zimbabwe, after ongoing exploration had resulted in the conclusion that future project development would require significant bulk sampling.

Premier also maintained a small operation in Togo and a much-needed reduced budget following the sale of its Togo phosphate operations to AgriMinco last year.

“This reflects our focus on near term production opportunities in Zimbabwe and difficulties in our relations with the Ministry of Mines in Togo. Given these issues, the board has decided to impair all exploration and evaluation costs capitalised for the Togo assets at the financial year-end,” Roach said. 

Premier was in continuous discussions with the Togolese authorities and was in early negotiations with other parties that had noted an interest in the company’s Pagala deposits.

Premier posted a loss of $4.77-million for the year ended December 31, as opposed to a loss of $2.1-million during the prior year.

“Over the past few years and, in particular, during 2013, the realities of the risk/reward factors that apply to mineral exploration, in addition to the difficult market conditions for junior exploration companies, have collectively contributed to a very challenging year,” Roach said, noting that despite this the company had retained its focus on development of certain key projects and advancing our strategies for dealing with other assets either by disposal, joint development or monetisation.

“Corporate costs associated with implementation of these strategies have been disproportionate. However, the benefits of persistence in closing several transactions are now being felt as we move through 2014,” Roach said.