DT Correspondent
Premier African Minerals, an AIM-listed mining and exploration company, has announced plans to raise £2.4 million (over US$3 million) through a subscription to ensure the timely commencement of production at the Zulu Lithium and Tantalum project.
The company aims to begin production in February 2024, according to CEO George Roach.
In order to secure the necessary funds, Premier African Minerals will issue new ordinary shares at an issue price of 0.23 pence per share.
The subscription seeks to raise the required capital before expenses to support the Zulu project.
Additionally, the company has conditionally settled payment of US$2.5 million (equivalent to £2 million) in invoices through the issuance of 769,230,769 new ordinary shares to JR Goddard Contracting (Pvt) Ltd, the contractor responsible for Zulu’s open-pit mining operations.
These shares were issued at a price of 0.26 pence per share.
Premier African Minerals remains on track to achieve its target of revenue-generating production by February 2024.
The installation of a 55 tons per hour ball mill and other associated structures, which is expected to be completed by late January or early February 2024, is a crucial step towards achieving this goal.
CEO George Roach expressed confidence that the raised funds through the subscription and the settlement with the mining contractor will support the Zulu project’s production timeline.
“The subscription and the contractor settlement should see Zulu through to production in February 2024.
“We are deeply encouraged that the subscription was taken up by two institutional investors with one of the investors having supported the Company previously. We believe that the attraction of further institutional investment into Premier demonstrates the underlying value of Premier.
“We would be remiss if we did not also express our appreciation to our Mining Contractor for their willingness to accept settlement of invoices in Premier shares,” Roach said.
The funds raised through the subscription and settlement will contribute to the smooth progression of the Zulu Lithium and Tantalum project, ultimately leading to the commencement of production in February 2024.
Premier African Minerals remains focused on delivering value to its investors and stakeholders as it moves forward with this significant mining endeavor.
