https://www.miningweekly.com

Premier Danakil acquisition receives TSX approval

9th May 2014

By: Leandi Kolver

Creamer Media Deputy Editor

  

Font size: - +

JOHANNESBURG (miningweekly.com) – Aim-listed Premier African Minerals on Friday announced that its 30% acquisition of the Danakil potash project, in Ethiopia, from Toronto-listed AgriMinco had been approved by the TSX, following the transaction’s approval by AgriMinco’s independent shareholders.

In terms of the C$4.9-million option agreement, Premier would buy the entire issued share capital of Mandalore Development, a wholly owned subsidiary of AgriMinco, which owned a 30% interest in Danakil.

Premier also reported that all the conditions precedent of its interest-free term loan of $2.5-million, repayable on December 31 to AgriMinco’s joint venture partner in the Danakil project, Circum Minerals, had been satisfied.

This bridge loan would enable Premier to exercise the option agreement.

Premier had also granted Circum an option, valid until June 5, which stipulated that in the event that Premier exercised the Mandalore purchase option, Circum could subsequently acquire Mandalore from Premier.

The Circum call option was exercisable at the sole discretion of Circum and was subject to conditions precedent, which included the completion of due diligence by Circum.

Under the Circum call option, Premier would receive an amount in cash on completion equal to the amount advanced to Premier under the bridge loan, new Circum shares and further deferred consideration payable in either cash or Circum shares, which was expected, in aggregate, to be no less than the consideration paid by Premier to AgriMinco.

Edited by Tracy Klückow
Creamer Media Contributing Editor

Article Enquiry

Email Article

Save Article

Feedback

To advertise email advertising@creamermedia.co.za or click here

Showroom

Werner South Africa Pumps & Equipment (PTY) LTD
Werner South Africa Pumps & Equipment (PTY) LTD

For over 30 years, Werner South Africa Pumps & Equipment (PTY) LTD has been designing, manufacturing, supplying and maintaining specialist...

VISIT SHOWROOM 
MBE Minerals SA (Pty) Ltd
MBE Minerals SA (Pty) Ltd

Your global lifecycle technology & service partner for materials & minerals processing equipment for coal, iron ore, copper, manganese & other...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

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?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.044 0.755s - 110pq - 2rq
Subscribe Now