 opted out of acquiring more shares in Casa Mining shares, after reviewing their position.){kind=link}
Premier African Minerals (LON:PREM) opted out of acquiring more shares in Casa Mining shares, after reviewing their position.
In October, Premier African Minerals acquired a 4.5 percent interest in Casa Mining Limited, a company based predominately in the Democratic Republic of Congo. With this initial acquisition, Premier had the option of increasing that stake to 30 percent by the end of December.
The company has decided not to initiate further direct funding for Casa’s gold mining activities. Premier initially raised £300,000 in funds for shares at 0.32p each. However, the shares have now dropped in value to 0.30p. Casa is looking for financing to expand its 5,000 metre exploration in Akyanga.
George Roach, Premier’s Chief Executive, commented:
“Our current market capitalization does not reflect the value of the underlying assets and accordingly we will not proceed with a direct financing to pursue the interest available in Casa. We remain strongly supportive of Casa and believe the project has great value and would generate significant value for Premier shareholders. I am pleased that Premier and Casa have agreed to work cooperatively to attempt to find a solution to both the consolidation of the Casa interests and appropriate finance to fully develop the project.”
Back in November, the company noted “very encouraging” developments with its Zulu project in Zimbabwe, where it drills lithium. Mr Roach stated at the time in comments to Proactive Investors:
“We are very excited that every hole that we have drilled so far – we’re on the 9th and 10th holes at the moment – every one has intersected what is massive, visible, enriched Lithium-bearing pegmatite material”.
Premier African Minerals Limited is a mining and natural resource exploration company that operates in Southern and Western Africa.
The firm has stakes in various projects which include a majority 52 percent stake in TCT Industrias Florestais Limitada in Mozambique, as well as 2 million shares in Circum Minerals Limited.