Premier African Minerals has agreed to acquire an additional 2% stake in MN Holdings (MNH), the owner of the Otjozondu manganese mining project in Namibia.

MNH is the owner and operator of the Otjozondu mine, which is 450km east of Walvis Bay, a port town on the coast of Namibia.

The mine also has an exploration target of 30 million tonnes (Mt) to 50Mt grading 23%-27% of manganese.

Upon completion of the acquisition, Premier’s interest in MNH will increase to 12%.

Premier African Minerals has invested $200,000 to increase its interest in MNH from the 10% stake bought in December last year.

The company noted that Premier has 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.

Premier African Minerals chief executive George Roach said: 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 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.”

In July last year, Premier African Minerals and Cambrian agreed to provide a $1.35m loan with an annual interest of 10% to MNH.