PREMIER African Minerals is aiming to raise £3 million (US$3,74 million) before expenditures to finance basic working capital and the ongoing mining operations at the Zulu Lithium and Tantalum Project near Bulawayo.
The firm on Thursday announced a subscription for 1 212 121 212 new ordinary shares to raise approximately £2 million (US$2,50 million) before expenses at an issue price of 0,17 pence per new ordinary share.
Following strong institutional interest for the first call, the company on Friday agreed to accept a further subscription of 588 235 294 new ordinary shares to raise approximately £1 million (US$1,25 million) before expenses at the same issue price.
“The final step in commissioning Zulu looks to be the changes to be made to the material flow through the flotation plant as described in our announcement of April 10, 2024,” Premier chief executive officer George Roach said.
“These changes expect to see the flotation plant able to accept the design tonnage and to remove the restrictions on potential spodumene concentrate production.”
The required piping and valves are expected to load for site today, and the expectation is that fitment could be complete as early as the week commencing April 22, 2024.
The subscription shares will, when issued, rank equal footing in all respects with the existing ordinary shares. CMC Markets UK Plc, trading as CMC CapX, acted as the company's placing agent.
“Premier continues to engage with Zimbabwean based lenders for working capital facilities and Zulu has now secured an interim working capital facility of US$300 000 in Zimbabwe,” the firm said.
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“An extended and larger term facility from potential lenders will only be potentially available once Zulu can demonstrate a steady state of production.
“Premier believes that securing funding through the subscription is the best immediate solution to securing further project funding. Premier continues to believe that once a steady state of production has commenced at Zulu, Premier should be able to secure further working capital in Zimbabwe.”
Premier intends to use the proceeds of the subscription principally to assist with the ongoing mining operations at Zulu and general working capital.
