MULTI-COMMODITY mining and natural resource development company, Premier African Minerals, is in the market seeking to raise £1,759,500 to assist with further operational funding of the ongoing optimisation operations and general working capital purposes necessary for the group.
The group, which is developing the Zulu project, announced the commencement of mining operations at the mine last month, effectively setting the tone for its first concentrate production.
The plant is now producing concentrate from both the spodumene and mica floatation circuits.
Officials have indicated that exploration activities outside of the new mining operations have identified additional spodumene-dominant pegmatites not included in the resource currently being mined.
Added to that, its joint venture partner at Mutare Project, as announced on 25 April 2022, has indicated that early trenching has uncovered substantial pegmatites.
Commenting on the placement offer, the mining house said it seeks to raise £1,759,500 before expenses at an issue price of 0,925 pence per new ordinary share for the ongoing Zulu Lithium and Tantalum Project (“Zulu”) Pilot Plant Optimisation.
“Premier has today issued by way of a placing (“Placing”), conditional on admission, 190,216,216 new ordinary shares of nil par value (“Placing Shares”) at a placing price of 0,925 pence per Placing Share,” said the company.
“The placing shares will, when issued, rank pari passu in all respects with the existing ordinary shares. CMC Markets UK Plc (“CMC Markets”), acted as the company’s sole placing agent in respect of the placing.
“The placing has been arranged within the company’s existing share authorities. Premier intends to use the proceeds of the placing principally to assist with further operational funding of the ongoing optimisation operations at Zulu and general working capital purposes necessary for the group.”
Premier chief executive officer, Mr George Roach, in a statement said: “Work on optimisation of the plant and process control procedures to achieve nameplate throughput will remain the sole focus of Zulu.
“Mining operations continue to encourage with both grade and ore body definition meeting our expectations. At the same time, exploration activities outside of the current mining operations have identified additional spodumene dominant pegmatites not included in the resource currently being mined”.
Spodumene is a battery-grade product, which is key for the future of electric cars.
Due to the emerging electric motor vehicle industry, there is increased international demand for the lithium mineral known as “white oil”, which is used for manufacturing batteries. Zimbabwe has the largest lithium reserves in Africa and the fifth-largest worldwide.
