Premier African Minerals to Raise 1.2m for Zimbabwe Project

• Premier African Minerals has raised approximately £1.2 million through a share subscription to fund the restart of its Zulu lithium and tantalum project in Zimbabwe.
• The capital will provide essential working capital to remobilise mining activities and restart the processing plant.
• The company's managing director stated the funding allows a direct move to plant operations, processing 13,000 tonnes of ore from the run-of-mine pad.
• An initial 15-day campaign will focus on sustained plant operation, product quality, and recoveries, aiming for consistent spodumene concentrate production.
• A successful campaign is expected to provide greater operational visibility for stakeholders and inform future project development and funding decisions.

For lawyers advising clients on Zimbabwe mining investment, this successful subscription funding and the planned restart signal potential renewed activity and opportunities within the sector, highlighting a practical model for financing the re-establishment of significant mining operations.

London-listed Premier African Minerals has successfully completed a significant capital raise, securing approximately £1.2 million before expenses through a subscription offering. This crucial Premier African Minerals Zulu lithium funding was achieved by issuing 27.52 billion new ordinary shares, each with a nil par value, at an issue price of 0.00436 pence per share. The net proceeds from this subscription are earmarked to provide essential additional working capital, directly supporting the anticipated Zulu lithium project restart at the company's Zulu lithium and tantalum project located in Zimbabwe.

The infusion of capital is specifically designated to facilitate the remobilisation of mining activities and the recommencement of operations at the processing plant. This financial backing is a pivotal step for the company, enabling it to advance its operational objectives in the region. The successful Premier African Minerals capital raise underscores a commitment to bringing the project back online and demonstrates a viable mechanism for financing operational restarts in the mining sector.

Graham Hill, the Managing Director of Premier African Minerals, confirmed that this new funding allows the company to proceed directly with restarting plant operations at Zulu. This represents a notable departure from the company's initial strategy, which involved accumulating a larger run-of-mine (RoM) stockpile before resuming processing activities. Hill explained that the progress achieved during the previous operational period has provided the board with a solid foundation to move forward with the restart, while maintaining a clear focus on achieving stable and consistent spodumene concentrate production.

The immediate operational target is an intensive campaign projected to last approximately 15 days. During this period, the primary emphasis will be on ensuring sustained plant operation, rigorously monitoring product quality, and optimizing recoveries. Hill highlighted that this focused approach is expected to create opportunities for extending operations beyond the initial campaign, demonstrating the plant's capabilities. The company is now concentrating on the immediate mobilisation of plant operations at the Zulu tantalum project, initiating processing activities using the estimated 13,000 tonnes of ore currently available on the RoM pad.

Looking ahead, the successful execution of this initial processing campaign is anticipated to significantly enhance the project's profile. Graham Hill noted that additional blasted material remains accessible within the Exclusive Prospecting Order (EPO) area. This material could potentially be mobilised to the RoM pad following the initial campaign, contingent upon satisfactory performance and the continued availability of working capital. This prospect offers a pathway to sustained operations and increased output.

A successful campaign is expected to provide the board, shareholders, and prospective funding partners with considerably greater visibility into the operational capabilities of the Zulu project. This improved transparency will, in turn, establish a stronger basis for determining the subsequent stages of the project's development. For lawyers advising clients on Zimbabwe mining investment, this successful subscription funding and the planned restart signal potential renewed activity and opportunities within the sector, highlighting a practical model for financing the re-establishment of significant mining operations.

Lawyers advising clients on mining investments or capital raises in Zimbabwe should note this successful subscription funding, which enables the restart of a significant lithium project. This development signals potential renewed activity and opportunities in the sector, and highlights a mechanism for financing operational restarts.

Source: Original reporting via New Zimbabwe