Premier African Minerals has issued more than 1,2 billion new ordinary shares to raise about £2 million ($2.51 million) before expenses at an issue price of 0.17 pence per new ordinary share, primarily for the Zulu Lithium and Tantalum Project in Zimbabwe.
It intends to use the proceeds of the subscription principally to assist with the ongoing mining operations at Zulu and general working capital.
The company said it believes that securing funding through the subscription is the best immediate solution to securing further project funding.
"The final step in commissioning Zulu looks to be the changes to be made to the material flow through the floatation plant as described in our announcement of April 10, 2024,” said company chief executive George Roach.
“These changes expect to see the floatation plant able to accept the design tonnage and to remove the restrictions on potential spodumene concentrate production.”
Meanwhile, Premier said it continues to engage with Zimbabwean-based lenders for working capital facilities, and Zulu has now secured an interim working capital facility of $300,000 in Zimbabwe.
An extended and larger term facility from potential lenders will only be potentially available once Zulu can demonstrate a steady state of production, it said.
Premier said it believes that once a steady state of production has commenced at Zulu, it should be able to secure further working capital in Zimbabwe.
Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished
