Premier African Minerals to inject £2 million in Zim lithium project

By Alois  Vinga

EMERGING Spodumene producer Premier African Minerals has tabled plans to raise £2 million which will be sunk into the Zulu lithium project.

The top miner specializing in projects located in Zimbabwe and Namibia recently announced a subscription offer for 1,2 billion new shares at an issue price of 0,17 pence in a bid to raise the required amount.

The company said the proceeds will go towards the development of the company’s Zulu lithium and tantalum project in Zimbabwe.

Premier’s CEO George Roath said the funds will be injected towards works at the Zimbabwean site.

“The final step in commissioning Zulu looks to be the changes to be made to the material flow through the floatation plant. These changes expect to see the floatation plant able to accept the design tonnage and remove the restrictions on potential spodumene concentrate production.

“The required piping and valves are expected to load for the site by Tuesday 16 April, and the expectation is that fitment could be complete as early as the week commencing 22 April,” he said.

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.

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 and contends that once a steady state of production has commenced at Zulu, the company should be able to secure further working capital in Zimbabwe.