Premier African Minerals (LSE:PREM) has raised £750,000 ($1.44 million) to fund advancing the Zulu Lithium Project in Zimbabwe, through the commissioning optimisation phases toward the production of spodumene concentrate.
Under the placement, shares were issued at £0.0126 per share. The shares will rank pari passu in all respects with the existing ordinary shares.
Funds will be issued to support ongoing operational activities and the continued installation of the Xinhai flotation plant, which supports Zulu’s advancement.
Managing Director Graham Hill says the coordination between the onsite team and the manufacturer’s engineer has been “strong”, and the company is now approaching a critical phase of construction completion.
“There is a growing sense that we are on the brink of turning an important corner operationally,” Hill says.
“At the same time, we remain actively acutely aware of the broader market backdrop. Geopolitical uncertainty, volatility in capital markets and the continued pressure on junior resource equities have all contributed to challenging funding conditions, often reflected in the discounts required to secure capital.
“Whilst these dynamics are not unique to Premier, they do influence market perception, often disproportionately to both the underlying progress being made on the ground and the value of projects.”
Earlier this week, Premier African announced its plans to begin commissioning and optimisation next quarter. Around 5,000 tonnes of ore is available on the run-of-mine stockpile for early commissioning, with additional ore to be supplied thereafter.
Zulu was first pegged in 1955 and intensely explored until the early 1960s. The project’s pilot plant has a nameplate throughput of up to 190 tonnes per hour, however it is planned to run at a more conservative 140 tonne per hour at inception over a three-year plant life.
Premier African Minerals is an emerging spodumene producer focused on lithium, tantalum and tungsten in Zimbabwe.
Write to Aaliyah Rogan at Mining.com.au
Images: Premier African Minerals
