Premier African Minerals Limited is set to ask shareholders to endorse a major capital-raising plan to ensure the progression of its Zulu Lithium and Tantalum Project in Fort Rixon, Matabeleland South, at the forthcoming AGM, Mining Zimbabwe can report.
By Ryan Chigoche
The board has flagged two critical resolutions as the main agenda items at the AGM, stressing that approval is essential for the company’s survival and future.
Given the company’s recent operating loss of US$7.7 million in the first half of 2025, and cash on hand of only US$29,000 as at 30 June, the meeting has become a make-or-break event for the miner.
Scheduled for 7 November 2025, the AGM follows a postponement made to allow extra consultation between the board and the company’s principal shareholder on the funding proposals.
Premier is seeking authority to disapply pre-emption rights for 24 months, allowing the board to issue or grant rights over up to five billion ordinary shares.
A second, conditional resolution asks shareholders to approve issuing a further one billion shares within the next 12 months, to facilitate the conversion of rights held by Canmax Technologies, as previously disclosed.
In its circular, the company stated:
“The Board strongly supports both resolutions. Without approval of these resolutions, the Company will be unable to issue shares or raise further capital, and this may have a material adverse impact on the Company’s ability to continue as a going concern.”
Managing Director Graham Hill highlighted the operational significance of the capital raise, saying:
“My conviction has been that in order to achieve stable and consistent operations, all parts of the plant need to be balanced in terms of mass and water flows. This is true for the existing flotation plant as well as for the Secondary Flotation Plant.”
Hill added that the funding will support Phase Five, the pre-production readiness phase, which involves extended plant runs, maintenance optimisation, and system balancing ahead of full-scale production.
The funding appeal comes amid notable operational and financial headwinds. For the six months ended 30 June 2025, the company reported an operating loss of US$7.687 million, attributed mainly to ongoing overheads and administration costs tied to the construction, installation, and optimisation of the Zulu plant.
Cash at hand stood at US$29,000. Furthermore, the company has warned that until the funding is secured and the plant is optimised, substantial uncertainty remains over its ability to deliver on its production targets and may cast doubt on its capacity to continue as a going concern.
This development comes as the company recently announced the completion of a detailed on-site technical audit at the Zulu project that reviewed core plant systems, including pumping, pipelines, and water and mass balance.
The findings from that audit will inform operational adjustments and funding deployment, supporting the company’s assessment of whether the plant, with the proposed capital injection, can reach its design capacity.
Given the operational challenges, tight cash position, and the stakes attached to Phase Five, the 7 November AGM takes on elevated importance: approval of the resolutions may well determine the company’s immediate future, whilst rejection could force Premier to pursue more uncertain, ad-hoc funding routes.
