UK-based mining and exploration company, Premier African Minerals intends to deploy the just mobilized £1, 2 million to resuscitate operations at its local mine.
The miner recently mobilised the funds after placing 4, 34 billion new shares which will go a long way to kick start operations at Zulu lithium project. The company also makes a retail offer of shares at the same price to rise to a further £2.3 million, which would bring the total raise to £3.5 million.
“The funds will be used to restart operations at the Zulu lithium and tantalum project, where money is needed to commission the primary flotation plant and to purchase a secondary plant.
“Premier also needs to pay taxes to the Zimbabwe government and wage arrears to employees. Premier also hopes to issue new shares to settle liabilities with some of its creditors,” said the company.
Premier African on Monday said partner Canmax Technologies Co Ltd has reaffirmed its intention to work with Premier African to complete the commissioning and optimisation of the primary and secondary flotation plants at Zulu.
A flotation tank is used to separate minerals from ore. Premier African and Canmax signed an off-take and prepayment agreement for Zulu back in August 2023 and updated its terms last month.
Premier said its Chinese partner Canmax is sharing similar objectives with both focused on getting the Zulu lithium project in Zimbabwe up and running smoothly.
“In my opinion, the objectives of Premier and Canmax are aligned with the sole intention of meeting delivery of product and liquidation of the prepayment, without which Zulu could not have been built.
“I remain confident that Premier will complete the optimisation and final commissioning of the spodumene float circuit at Zulu. The extensive additional test work completed in the latter part of 2024 and the purchase of additional float cells to be installed at Zulu will support this,” said George Roach, Premier’s Chief Executive Officer. – (New Zimbabwe)
