Premier African Minerals has revealed plans to raise £4 million ($5 million) through a placing and subscription to advance the Zulu lithium and tantalum project pilot optimisation in Zimbabwe.
The company intends to use the proceeds to cover the expenses of installing the temporary mill and thickener.
These additions are expected to significantly improve the output capacity to 50% as of October. Furthermore, the funds will also be allocated towards pit development, particularly to clear the weathered zone.
In addition, the proceeds will contribute to covering the general operational costs until November.
“Based on current projections, this funding and the arrangements set out below are expected to see Zulu pass through the current interim remedial situation and allow the company to reach target nameplate production at Zulu,” said company chief executive George Roach.
The open pit mining contractor, JR Goddard Contracting, and the Zulu design, procurement, installation, and commissioning contractor, Stark International Projects, have agreed to collectively accept payment of a limited number of future invoices until December 2023 in new ordinary shares of the company.
Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished
