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Premier African to acquire up to 68% interest in Mozambique-based limestone project


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Premier African to acquire up to 68% interest in Mozambique-based limestone project

PremierAfrican Minerals Ltd. said April 27 that it will acquire an initial52% interest in TCT Industrias Florestais Ltda., owner of a 27-square-kilometerlimestone deposit in the Sofala province of Mozambique, for US$2.1 million.

The company also raised gross proceeds of £1.1 million byissuing 146,666,667 new ordinary shares at 75 British pence apiece to fundTCT's projected exploration, operating and development expenditure and the initialcash acquisition costs.

After the initial capital injection, Premier expects TCT tobe self-sustaining.

TCT holds the exploration license together with significantforestry operations, which are expected to contribute significantly toexploration and development expenditure funding of the limestone deposit.

Under the agreement, the company will acquire a 26% interestin TCT from Transport Commodity Trading Mozambique Ltda. for US$1.1 million,and a further 26% interest from GAPI Sociedade de Investimentos SA for US$1.0million.

Premier also entered into a binding memorandum ofunderstanding with TCT shareholders, agreeing to fund the limestone explorationprogram and its operations by way of a loan of up to US$1 million, subject toreceiving the necessary consent from the Mozambique central bank.

The company will have the right to convert the loan amountsinto TCT equity to increase its interest to a total of 68%.