(Alliance News) - Premier African Minerals Ltd on Wednesday said that it increased its stake in the Otjozondu manganese mining project in Namibia to 19%, by acquiring further 7% stake for USD700,000 in shares.
The Africa-focused mineral projects investor has bought the further stake in MN Holdings Ltd, the owner and operator of the Otjozondu project.
Premier African Chief Executive George Roach said: "This further proposed increase in our holding in MNH is based on the same valuation formula applied to our initial acquisition, effectively an independent valuation of plant and machinery and does not factor any upside into the price calculation.
"Nevertheless, this does represent a more significant stake in what we expect to be a cash generative asset supportive of group overheads in the near future and comes on the back of a sharp increase in the price for manganese".
The Otjozondu project is located in a well-known and established manganese district that has been largely consolidated under Otjozondu, whose tenements cover an area of 1,367 square kilometres and more than 114 kilometres of strike, of which only 14 kilometres has been explored to the point of declaration of a JORC resource.
The project is currently exporting up to 10,000 tonnes lump ore per month at better than 35% manganese. It has an anticipated exploration target of 30 million tonnes to 50 million tonnes grading at 23% to 27% manganese.
Shares in the company closed 0.2% lower at 0.060 pence each in London on Wednesday.
By Tapan Panchal; tapanpanchal@alliancenews.com
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Premier African Minerals (PREM)