Premier African Minerals assumes control

Premier African Minerals Ltd has closed acquisition of a controlling stake in TCT Indústrias Florestais Lda, a Mozambican company with interests in a limestone mine and a logging business, indicates a statement released on Monday in London. 

Under the deal, Premier African Minerals Ltd will obtain a 52 percent stake in TCT Indústrias Florestais Lda for  US$2.1 million – 26 percent from Transport Commodity Trading Mozambique Ltd (TCTM) and 26 percent from GAPI Sociedade de Investimentos. TCT Indústrias Florestais Lda is a private company that holds a license to exploit a 27 sq. km limestone deposit and a 24,812 hectare forestry concession in central Mozambique. An associated sawmill and factory produce furniture and semi-finished products for export. The limestone deposit is located within the forestry concession 20 km southwest of Caia, served by the Sena railway line between Tete province and the city of Beira. The forestry concession is valid for the next 10 years and can be renewed for a further 50 years. The concessionaire is permitted to cut 3,000 cubic metres of wood per year.

According to Premier, TCT IF is self-sustaining and will contribute positively to group cash flows in 2017. Local demand for lime for cement production, agricultural and other uses underpins the case for a low capital cost industrial scale production development, while the forestry operations will significantly reduce exploration and development costs of the deposit.

George Roach, Premier African Minerals’ chief executive, said: “This is a unique opportunity to acquire a deposit that has very good prospects for development into a major low cost industrial scale mining operation, with essential infrastructure already in place and a cash generative business to help finance the development.”

Early testwork on surface material of the limestone indicates that there are potentially acceptable grades of calcium carbonate for limestone for use in cement production.

In addition, initial work suggests that solubility should be suitable for Agrilime and the material is also expected to be suitable for aggregate production.Premier plans to begin an initial exploration and assessment work programme on the limestone deposit over the course of 2017.Premier African Minerals is a company specialising in exploitation of natural resources in western and southern Africa. It is listed in the Alternative Investment Market of the London Stock Exchange.