London — Premier African Minerals on Wednesday announced that it is to dispose of its assets in the forestry sector in central Mozambique.
This company has its registered office in the tax haven of the British Virgin Islands. It has other offices in Johannesburg, Togo, Zimbabwe and London.
Less than a year ago, the company bought a controlling stake in the Mozambican concern TCT Industrias Florestais Limitada for 2.1 million US dollars through the purchase of a 26 per cent stake from Transport Commodity Trading Mozambique Ltd (TCTM) and another 26 percent from GAPI Sociedade de Investimentos.
However, up until now Premier African Minerals has not paid its debt to these two Mozambican companies.
TCT holds a 25,000 hectare forestry concession near the town of Caia in the central province of Sofala. Under the ten year concession, TCT can process 3,000 cubic metres of wood per year. It also owns a sawmill and wood processing factory.
Premier African Minerals is to give its forestry assets to the company Amire Glory in return for the buyer taking on the 2.1 million dollar debt. Amire Glory was initially set up in order to acquire a 60 per cent controlling interest in the assets (mostly in forestry, agriculture and tourism) of the Madal Group in Zambezia province.
TCT also holds a licence for a limestone deposit and Premier African Minerals will continue to hold a fifty per cent interest in this business.