main part worth reading..7 Nov 2018 09:36
I anticipate further announcements in the coming days, not least in regard to the RHA Tungsten Mine equity resolution as Premier continues to be in constant contact with the Ministry of Industry, Commerce and Enterprise Development and, following recent public comments by the Minister of Mines in Zimbabwe, we believe that the current delays are solely procedural in nature.
The Board of Premier believes that this transformative transaction will deliver considerable potential value to both Premier's and KME shareholders alike."
Background to and reasons for the proposed Restructuring, Acquisition and Demerger
Over the past few years, Premier has considered a number of options for developing the intrinsic underlying value of its projects, while at the same time dealing with the fact that development of exploration and mining interests has a substantial cost. While Premier's shares have been actively traded and it is a very liquid stock, the Company's share price has continuously suffered and the underlying intrinsic value of Premier's assets has been eroded. In this context, Premier has previously considered a spin-out of some or all of its exploration and development projects and the introduction of new operating management.
The Board of Premier believes that the opportunity to combine Premier's Zimbabwe-based mineral projects and KME's operational assets and Zimbabwean management team, that has a proven track record in operating mines and developing exploration projects in Zimbabwe provides a basis for successfully spinning-out the Group's Zimbabwe mineral projects on an independent and attractive footing, as well as achieving substantial direct operating cost savings in Premier. Premier Shareholders will on completion have a direct interest in Newco and continue to hold their interest in Premier, whose sole asset will then be its interest in Circum.
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