Premier receives final $1m for Danakil from Circum Minerals

12th January 2015

JOHANNESBURG (miningweekly.com) – Aim-listed Premier African Minerals has received the final $1-million tranche from potash developer Circum Minerals as payment for a 30% interest in the Danakil potash project, in Ethiopia.

In May last year, Premier acquired Mandalore Development, which held a 30% stake in the project, from Toronto-listed AgriMinco.

It then agreed to sell Mandalore’s stake in the project to codeveloper Circum Minerals, which already owned 70% of the project, for two-million Circum shares and $4-million to be paid in tranches of $1-million.

The Danakil project
encompasses an established large-tonnage, shallow potash deposit
centered within a potash-mineralised envelope in the Danakil basin in
the Afar region of north-eastern Ethiopia.
It covers an area to the north of the Crescent and the Musley potash
deposits, which were explored in the 1950s and 1960s by the Ralph Parsons Company.

It is located about 600 km north-north-east of Addis Ababa and nearly 85 km from the Red Sea on the coast of Eritrea.

Danakil had an indicated mineral resource of 708.8-million tons at an average grade of 19.4% potassium chloride, for a total of 137.7-million tons of contained potassium chloride.