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(Alliance News) - Premier African Minerals Ltd on Friday said it will seek shareholders approval to sell its investment in Circum Minerals Ltd in order to repay debt.
Premier holds 5.0 million shares in Circum. The shares currently have a carrying value of USD6.3 million.
Back in June, Circum indicated that it is planning a liquidity event - meaning a chance to buy and sell shares - to allow new and existing investors to participate in the development of its projects. Circum is currently working on the Danakil potash project in north-eastern Ethiopia.
In anticipation of the liquidity event, Premier on Friday said it would convene a general meeting at which shareholders will be asked to approve the disposal of the Circum interest.
Conditional on the approval, the investment firm said it will use the disposal proceeds to repay all of its existing debts and liabilities.
For any remaining cash from the disposal, shareholders will be asked to approve either direct distribution by way of a share dividend or share buyback scheme, or the retention by the company to allow it to invest into existing or new projects.
The stock was trading 13% higher in London on Friday at 0.031 pence a share.
