Premier gets update from Circum Minerals

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

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