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Premier African Minerals Limited (AIM: PREM) has secured £1.38 million in new funding through a share subscription, as the company continues to drive progress at its Zulu Lithium and Tantalum Project in Fort Rixon.
By Rudairo Mapuranga
The fresh capital, raised via the issue of 6 billion new ordinary shares at 0.023 pence per share, will support the ongoing optimisation of the Primary Flotation Plant, provide potential funding for a secondary flotation facility under review, cover operating expenses and debt settlements, and bolster working capital.
Premier highlighted that the primary allocation of the funds will be directed toward refining and optimising the Primary Flotation Plant at Zulu, which has already produced spodumene concentrate exceeding the 5% Li₂O threshold required for saleable product. Further investment will ensure consistent production at saleable grades, a critical step in advancing Zulu from its early operational stage into sustained output.
The company is also keeping the option open to fund an alternative flotation plant, pending the outcome of the recently announced review into its feasibility and benefits.
A portion of the proceeds will be used to settle certain operating costs and debts while Premier continues negotiations on the non-binding letter of interest with a large international trading house. That potential offtake arrangement, announced earlier this week, is seen as key to securing stable sales channels and long-term financial sustainability for Zulu.
Chief Executive George Roach welcomed the outcome of the raise, noting the positive signal it sends to the market.
“We are very pleased to have completed this capital raise at a price representing a significant premium to our last funding round, and see this as clear recognition of the progress we are making,” Roach said.
The issue of 6 billion new shares will increase Premier’s issued share capital to 83.67 billion ordinary shares, with application for admission to trading on AIM expected around 28 August 2025.
This fundraising comes at a critical juncture for Premier, which is working to move Zulu beyond commissioning hurdles into full-scale production amid strengthening spodumene prices globally. The company maintains an internal target to achieve spodumene production costs of approximately US$500 per ton at mine gate, a figure not independently verified but considered highly competitive in the current lithium market.
With funding secured, Zulu’s optimisation work will continue, alongside strategic reviews and offtake negotiations that are expected to shape Premier’s next growth phase. If successful, the financing and operational progress could pave the way for Zulu to emerge as one of the region’s most significant lithium producers.
