JOHANNESBURG (miningweekly.com) – Potash project developer Circum Minerals has engaged a strategic adviser for its Ethiopian potash deposit, enabling shareholder multicommodity natural resource company Premier African Minerals to focus on its other projects.
Circum Minerals, which completed a definitive feasibility study (DFS) on its Danakil project earlier this year, mandated the undisclosed adviser to invite strategic development partners and financial institutions to participate in the potash project.
The DFS had shown the potential of Danakil to be one of the lowest-cost, lowest capital intensity, large-scale potash projects in the world with excellent economics and expansion potential.
“[The] projected future value of Premier's holding in Circum Minerals far exceeds Premier's present market capitalisation and does give comfort in [the] management of the debt burden Premier currently carries on behalf of the RHA Tungsten project, in Zimbabwe, as well as future placements that may be required in getting RHA into profit as we expect in the first quarter of 2016,” Premier CEO George Roach commented in a statement.
Circum anticipated production to be scaleable from an initial estimate of two-million tonnes a year of muriate of potash and 750 000 t of sulphate of potash for Phase I, with a scoping study expected to be completed in 2016 for the expansion of production to five-million tonnes a year.
Edited by: Chanel de Bruyn
Creamer Media Senior Deputy Editor Online
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