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[Ferro-alloys.com] Premier African Metals (LON:PREM) expects to be in a strong cash position as the proceeds from the disposal of its Danakil potash project are paid.

Danakil was sold to private company Circum last month, with Premier African receiving net cash proceeds of US$5mln payable in stages and shares with a nominal value of US$1.4mln.

The company will now focus on its RHS tungsten project in Zimbabwe, while the viability of a pilot plant at its Zulu pegmatite deposit is also under study.

Premier added it has not yet used its equity stand-by facility and, following completion of the Circum transaction, is unlikely to require it.

Premier African posted losses of US$4.77mln (US$2.1mln) in 2013.

• [Editor:Yueleilei]