Diversified mining group Premier African Minerals Limited has abandoned plans to de-merge its Zimbabwe assets and list them in London.

Alternatively, the resources firm has decided to acquire a 50% share of the assets of KME, its contractor at the RHA tungsten and Zulu lithium projects.

In respect of the initial plan, KME’s assets were to be combined with RHA and Zulu to form a new company but that idea has now been put aside in view of the complicated ownership structure of RHA.
Premier has said it will issue US$1.4 million worth of shares for the stake in KME.

The explorer is also buying 50% of a potential gold producer, Honey Badger Resources, for US$3.7 million also to be settled in Premier shares.

Said Premier CEO George Roach:

“Existing Premier shareholders are likely to retain a substantially greater interest in our projects going forward than may have been the case with the previously announced November KME Transaction.”
“We believe there is potential to develop a significant gold mine in this region of Zimbabwe that already hosts major gold production. Our initial exploration target is 2 million ounces.”
And on the proposed new deal, he added:

“The proposed terms of the New KME Transaction has reduced the overall acquisition cost to Premier while retaining the key benefit of being able to carry out the further drilling required for the definitive feasibility study for Zulu at significantly reduced cost and while still allowing Premier to hold 100% of Zulu.”