LONDON - Premier African Minerals (LON:PREM) Limited ("Premier") is grappling with a regulatory hurdle as the Ethiopian Ministry has revoked the Mining and Licence Agreement (MLA) for Circum Minerals Limited ("Circum"), a company in which Premier holds a significant interest through Vortex Limited. This development follows the declaration of a state of Force Majeure at Circum since September 20, 2022.
Vortex, which manages Premier’s stake in Circum, owns 36.7% of Circum’s shares. The revocation of the MLA comes despite the ongoing Force Majeure, a clause that typically protects parties in the event of extraordinary circumstances. In response to the Ethiopian Ministry’s action, Circum has declared a dispute and has engaged the law firm Boies Schiller Flexner to pursue arbitration.
Premier’s CEO, George Roach, expressed optimism about the property’s potential and the company’s expectation that the MLA will eventually be reinstated. As of June 30, 2024, Premier’s 13.1% interest in Vortex was valued at $501,000.
The announcement, which contains inside information as defined by the Market Abuse Regulations, was arranged for release by George Roach. This event may have implications for investors, given the uncertainty surrounding the arbitration outcome and the future of the mining project.
The information in this article is based on a press release statement from Premier African Minerals Limited.
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