Premier African Minerals’ stake is set to rise to 12 per cent after agreeing to acquire an additional 2 per cent stake in MN Holdings (MNH).
MNH is the owner and operator of the Otjozondu mine, a manganese mining project, which is 450km east of Walvis Bay, a port town on the coast of Namibia.
Premier African Minerals has invested $200,000 to increase its interest in MNH from the 10% stake bought in December last year.
Premier satisfied the consideration by issuing 171,074,444 new shares priced at 0.09p a share, totalling £153,967 ($200,401), to MNH owner Nera Consulting.
In July last year, Premier African Minerals and Cambrian agreed to provide a $1.35m loan with an annual interest of 10% to MNH.
Premier African Minerals chief executive George Roach applauded the move and said it is a small step for the entity towards becoming an independent cash generative project.
“This is another small step on the way to becoming independently cash generative, which will assist in our plans for the restarting of production at RHA Tungsten and in due course, the long-awaited exploration and development of Zulu Lithium.
“MNH is one of the very few manganese producers able to lay claim to remain cash positive and profitable through the recent fall in manganese prices, and with the recent reversal and more positive outlook for manganese, our association with MNH bodes well for the future,” he said.
The mine has an exploration target of 30 million tonnes (Mt) to 50Mt grading 23%-27% of manganese.