Premier African Minerals Limited / Ticker: PREM / Index: AIM / Sector: Mining
30 January 2013
Premier African Minerals Limited (`Premier' or `the Company')
Proposed sale of Mali Subsidiary
Premier African Minerals Limited, the AIM quoted multi-commodity natural
resource company with mineral projects located in Western and Southern Africa,
is pleased to announce that it has entered into a non-binding Memorandum of
Understanding (`MOU') for the sale of the Company's Mali subsidiary, G and B
African Resources Mali SARL (`Mali Sub') to Ethiopian Potash Corp. (`EPC') (TSX
Venture: `FED'), an Ethiopian focussed potash company. The sale would be
satisfied by the issue of 20,000,000 new shares in EPC. Mali Sub holds certain
rights to acquire exploration licences in Mali, primarily prospective, for
potash. The Board of Premier stated that it was reviewing opportunities to
realise the value of its Mali project and operations in its Admission Document
dated 4 December 2012.
The MOU includes a number of complex transactions that are subject to final
agreement by all parties and in some instances approval by the Toronto Stock
Exchange (TSX) and EPC shareholders. Further details of the MOU can be found in
the press release of EPC to be found on its website at www.ethiopianpotash.com.
Conditions precedent will include, among other things, due diligence, the
execution of mutually satisfactory definitive agreements among the parties and
obtaining all required approvals, including but not limited to TSXV and
shareholder approvals, and there can be no certainty that the contemplated
transactions will close.
George Roach, Premier CEO said, "This transaction allows Premier to retain
exposure to the Mali Sub properties and gain exposure to the highly prospective
Danakil Property in Ethiopia through its shareholding in EPC, whilst avoiding
the significant exploration expenditure required to quantify the projects'
potential. Furthermore, Premier is now able to acquire listed securities in the
form of 20m EPC shares. Consequently, this transaction underlines our ability
to source projects and crystallise value through either development or a
corporate transaction for the benefit of our shareholders.
"On a wider level, we continue to implement our business strategy of building
shareholder value through strategic, cost-effective acquisitions and joint
venture partnerships, whilst advancing our multi-commodity portfolio that
already consists of pre-production assets and early stage exploration projects
primarily in Zimbabwe and Togo."
For further information and full details of the MOU, please visit
www.premierafricanminerals.com or contact the following:
Pamela Hueston Premier African Minerals Tel: +44 (0) 755 778 3855
Tony Rawlinson Cairn Financial Advisers LLP Tel: +44 (0) 207 148 7900
Jerry Keen Shore Capital Stockbrokers Tel: +44 (0) 207 408 4090
Edward Mansfield Shore Capital Stockbrokers Tel: +44 (0) 207 408 4090
Felicity Edwards St Brides Media & Finance Ltd Tel: +44 (0) 20 7236 1177
-0- Jan/30/2013 12:05 GMT
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