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LONDON (Alliance News) - Shares dropped in Premier African Minerals Ltd on Wednesday as it said it will not proceed with the acquisitions of 50% of KME Plant Pty Ltd and 50% of Honey Badger Resources Ltd.
Shares in the mining company fell 12% at 0.070 pence.
Premier African dropped the proposed acquisitions due to uncertainty over the future of its subsidiary RHA Tungsten Pvt Ltd.
Premier African in November agreed a deal to buy assets from KME Holdings Ltd for USD4 million, then combine them with its own Zimbabwean assets and seek a listing for them on an unspecified London market.
However, in February the terms were amended so that Premier African would pay USD1.4 million for half of KME Plant, which includes six exploration rigs, and various vehicles and equipment at a value of USD4 million. These are the same assets agreed in November.
Premier African in February also said it would buy 50% of Zimbabwe-focused near-term gold producer Honey Badger for USD3.7 million in stock. Honey Badger has two development projects, with one having a resource of 535,000 ounces and the second a historic resource of 500,000 ounces.