Looks a no brainer to me4 Apr 2012 09:39
Once better known as a football agency, cash shell Premier Management (PRM) has taken up its option to acquire Central Asia Resources.
Serial mining entrepreneur John McKeon is behind the deal, which will lead to the AIM minnow picking up a controlling stake in a minerals exploration company based in the Kyrgyz Republic. The third largest gold producer of the CIS countries, it has a well developed mining industry with robust ancillary services.
The main focus is the Cholokkaindy Project License, situated to the north west of the Tien Shan metallogenic belt. Across the 1500km belt from Western Uzbekistan to Western China there are a number of gold deposits, as well as producing mines.
Premier intends to acquire licenses and projects to exploit opportunities in natural resources in Central Asia - with a particular emphasis on precious metals in the Kyrgyz Republic. The intention is to relist and change the name to Premier Gold Resources to reflect its new found direction.
To fund the acquisition, it is issuing new shares at 3p, which represents a huge premium to its currently suspended share price of 0.76p. However, last year it did raise a combined £2.24 million in two placings at 3p to help fund planned exploration work. Dealings are due to recommence on AIM on 30 March. One for McKeon fans.