RE: RNS10 Feb 2022 11:08
************** of Circum Interest to Vortex
Premier African Minerals Limited ("Premier" or the "Company") is pleased to announce that it has accepted a share offer by Vortex Limited ("Vortex") for the exchange of Premier's entire 4.8% interest in Circum Minerals Limited ("Circum"), the owners of the Danakil Potash Project in Ethiopia, for 5,010,333 new shares in the capital of Vortex ("**************") representing an interest of approximately 13.1% of the enlarged share capital of Vortex.
Neil Herbert, Chairman commented, "This Vortex offer consolidates a substantial percentage of minority shareholders representing 36.7% of Circum. The three other major shareholders in Circum are African focussed private equity mining group AMED Funds, CE Mining headed by Brad Mills and a private mine investment group, Angstrom. Circum is the owner of a world class potash project in the Danakil Basin and has recently completed a revised DFS with a first phase production of 375Ktpa of SOP, an associated capex of approximately US$430m and positive economic outputs which have further de-risked the project from a financing perspective. The initial production is planned to be doubled as and when market conditions allow, with engineering completed for 750Ktpa of SOP.
With current potash prices at all-time highs this project has significant potential value which is only constrained by the current conflict in Ethiopia. On settlement of the conflict, Circum believes it will be well placed with an approved DFS and corresponding extension of Circum's Mining Licence to finalise project financing and the commencement of construction."
Background to the ************** and Information on Vortex
Since the formation of Circum in September 2011, Circum has invested significant funds in its development (approximately US$70m) to bring the project to the stage where it is ready to be financed and constructed. Premier believes that there is significant global interest in fertilizer projects such as Circum, with recent announcements of substantial investments into fertilizer projects demonstrating the attractiveness of potash as an investment opportunity. In addition, sanctions against Belarus and Russia should continue to sustain a tight and robust market for potash.
Vortex is a newly formed unquoted special purpose company founded by Regent Mercantile Holdings Limited ("Regent"). Regent proposed a ************** to the minority shareholders in Circum, including Premier, for new shares in Vortex. Accepting shareholders would have an indirect interest in Circum through their holding in Vortex, and their Vortex interest would mirror their current ownership of Circum.
Premier has agreed to accept Vortex's ************** offer. In addition to Premier, a number of other minority shareholders in Circum have also agreed to accept the ************** offer. On completion, Premier's interest in Vortex is expected to amount to approximately 13.1% and Vortex is expected to hold in aggre
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