Premier African Minerals has announced a subscription of 4.5-billion shares to raise £1.58-million before expenses at an issue price of 0.035p per new ordinary share.
The funds raised will be primarily used to assist with paying for the secondary flotation plant, the start of civil works on the secondary plant and the management of essential creditors at the company’s Zulu lithium and tantalum project in Zimbabwe. It will also provide general working capital for Premier.
Premier said the company considered it essential to complete the commissioning and optimisation of both the primary and secondary flotation plants at Zulu to ensure the plant was able to achieve the required grade and tonnage to reach a binding agreement for the project’s future development.
“The recently announced amendment to the offtake and prepayment agreement with Canmax, the provision of a non-binding letter of interest and the alleviation of the concerns related to the long stop date all help a restoration of confidence in Premier, and this should help support us through the next three months whilst we complete the spodumene float section at Zulu,” Premier CEO George Roach said on April 25.
Following this subscription, Premier said that it would continue to require future funding in particular to ensure that the Zulu plant was able to achieve the required grade and tonnage to reach a binding agreement for the future development, meet operating costs of Zulu and settle creditors. – (Mining Weekly)
