Circum Minerals targets 2 Mt of MOP production

Premier African Minerals has announced that Circum Minerals, a Company in which it holds 2 million shares, has provided the following minerals update.

– Targeting annual production of 2 Mt of MOP and 0.75 of SOP for phase 1 using low cost, low risk solution mining and solar evaporation

– Mineral resource of 4.9 billion tonnes at 18.1% KCI with reserves of 107.8 of KCI equivalent

– Seismic data suggests potential total resource of 12 to 14 billion tonnes

– Scalable production – resources sufficient to support at least two, possibly three expansions

– Mine gate cash costs projected to be among the lowest in the world

– One of the lowest capital intensity per annual tonne of any major potash project in the world

– Substantial transportation advantages to India, Southwest Asia and South China

– Management team has experience building mines and track record to production

George Roach, Premier’s CEO, commented:

“The expected sign-off of Circum’s mining license and possible liquidity event in the near future, the impending return to production at RHA, ongoing results from Zulu Lithium and the end of all convertible loan notes all support the recent improvements in Premier’s market capitalisation. To put the Danakil project in context, the much smaller Yara project to the south of Circum was funded on a valuation of US$200 million last year (i.e. equivalent to Circum at $2 per Circum share). And, I believe that Circum should warrant a significantly higher valuation on its much bigger project particularly as and when the mining license is granted.”

At 2:40pm: (LON:PREM) Premier African Minerals share price was +0.08p at 0.65p

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