Premier African Minerals Limited has secured approximately £500,000 in fresh funding to support ongoing operations and commissioning work at its flagship Zulu Lithium and Tantalum Project in Zimbabwe.
The mining company announced that the funds were raised through a subscription involving the issuance of new ordinary shares priced at 0.0185 pence each. In total, 2.7 billion new shares were issued to investors as part of the capital raise.
In addition to the subscription, the company settled £100,000 worth of supplier invoices by issuing more than 540 million shares at the same price, bringing the total number of new shares issued to about 3.24 billion.
The funds are expected to help the company maintain operational momentum at the Zulu project, particularly in completing the installation and commissioning of a flotation processing plant supplied by Yantai Xinhai Mining Machinery Co., Ltd..
Chief executive officer Graham Hill said the funding was essential to support ongoing work at the mine as the company works toward stabilising production.
“This funding provides important working capital to support ongoing operational requirements at Zulu and the continued progress of the installation and commissioning of the Xinhai Flotation Plant,” Hill said.
He added that maintaining progress on the processing plant is critical to improving output quality and recovery rates.
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“Maintaining the momentum we have created in advancing the Xinhai Flotation Plant is of vital importance as we move toward stable operations and a positive future at Zulu,” Hill said.
The flotation plant, designed to process between 15 and 20 tonnes of ore per hour, is expected to improve the recovery of lithium and tantalum and enable the project to produce concentrate at commercially viable grades.
According to the company, the newly raised funds will be used primarily to support commissioning work on the plant, meet operating costs at Zulu, settle essential creditor obligations, and provide general working capital.
Hill said the company’s leadership remains focused on achieving consistent production levels.
“The Board remains firmly focused on stabilising operations at Zulu and progressing towards consistent production,” he said.
The newly issued shares are expected to be admitted to trading on the Alternative Investment Market (AIM) of the London Stock Exchange on or around March 17.
Following the share issuance, Premier’s total issued share capital will rise to approximately 17.5 billion ordinary shares with voting rights.
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