Bumper pigeon pea harvest in India causes crisis in Mozambique
Premier African Minerals Ltd on Thursday said it is still looking to sell or find a partner for Mozambique-based TCT Industrias Florestais Ltda’s forestry interests, while maintaining exposure to the company’s substantial limestone deposit.
Premier African said earlier this month that it was reviewing potential partnerships or a possible sale of its forestry interests, whilst ensuring that Premier African maintains an interest in the limestone deposit
“These discussions are continuing. Premier is now principally focused on the development of its Zulu lithium asset and RHA project, together with increasing its strategic interest in Circum Minerals,” said Premier African Minerals on Thursday.
“While the limestone asset of TCT IF remains of continuing interest to Premier, the forestry interests are not material in the ongoing development and strategy of the group, a view supported by the recent country-wide suspension of timber cutting and export licences in Mozambique,” it added.
Importantly, Premier African Minerals said the payment due to the vendors of TCT IF – purchased by Premier African in October 2016 – is “only due following final procedural registration of the assignment of quotas by the Mozambique authorities”. As this registration is still outstanding, it has the opportunity to “potentially novate its rights and obligations under the acquisition agreements whilst still retaining a free carried 50% interest in the limestone deposits to completion of the initial exploration programs and without cost.”
Premier African Minerals agreed to buy a 52% stake in TCT IF for a total of USD2.1 million – acquiring 26% from Transport Commodity Trading Mozambique Ltda for USD1.1 million and 26% from GAPI Sociedade de Investimentos SA for USD1.0 million.
Under those terms, Premier African Minerals said it would pay Transport Commodity Trading USD220,000 following regulatory approval, a further USD440,000 60 days later, USD220,000 a further 30 days later, and a final amount of USD220,000 a further 40 days later.
For the deal with GAPI, Premier African said it would pay USD220,000 following approval, with USD195,000 following within 13 months of the first tranche. A third tranche of USD195,000 would be payable within 21 months of the first tranche and the last payment of USD195,000 would be due within 36 months of the first tranche.
Notably, Premier African Minerals said the original public deed certificates would be held by its elected solicitors, SAL & Caldeira Advogados Ltda, until “written confirmation is received from either GAPI or TCTM confirming that the final instalment of the purchase price has been received”.
Further, Premier African had said: “thereafter, the certificates will be released to Premier whereby final procedural registration of the assignment of quotas as well as the publication of the amendment of the articles of association of the TCT IF shall be enacted”.
“A further announcement will be made in due course,” said the company on Thursday.
Premier African Minerals shares were down 3.9% at 0.409 pence on Thursday.
By Joshua Warner