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London-listed Premier African Minerals Limited has raised £1 million (approximately US$1.25 million) through a heavily dilutive share subscription, as the company intensifies efforts to unlock commercial production at its Zulu Lithium and Tantalum Project in Fort Rixon, Mining Zimbabwe can report.
By Rudairo Mapuranga
The funding, announced this week, comes as Premier continues to grapple with operational delays at Zulu and rising creditor pressures, prompting a renewed focus on installing a secondary flotation plant, viewed by management as critical to achieving acceptable production grades and recoveries.
Premier issued 3.33 billion new ordinary shares at an issue price of 0.03 pence per share to raise the £1 million before expenses. In addition, the company settled approximately £140,000 in outstanding supplier invoices and accrued but unpaid salaries owed to former directors and consultants through the issuance of a further 493 million shares at the same price.
In total, 3.83 billion new shares have been issued, increasing Premier’s issued share capital to more than 13.3 billion ordinary shares.
The settlement of liabilities through equity underscores the company’s tight cash position, with share-based settlements increasingly being used to manage creditors while preserving limited working capital.
According to Premier, the primary purpose of the fundraising is to complete the purchase of a 15–20 tonne-per-hour flotation cell plant manufactured by Xinhai Technology Processing EPC. The new plant is expected to supplement the existing processing circuit and provide what management describes as the “shortest possible” route to commercial production.
The company has repeatedly acknowledged in prior regulatory updates that the original flotation plant has struggled to deliver consistent product at the required grade and tonnage, despite prolonged optimisation, engineering audits and OEM-led modifications.
Managing Director Graham Hill said the funding would allow Premier to advance installation of the Xinhai plant while continuing to meet essential operating costs at Zulu.
“I am confident this will provide Zulu with the opportunity to progress to commercial production in the shortest possible time,” Hill said.
Beyond plant acquisition, Premier stated that part of the proceeds will be used to fund operating expenses at Zulu and manage essential creditors. This follows a series of recent disclosures relating to creditor negotiations, including a structured settlement agreement with J.R. Goddard Contracting after enforcement action was initiated at the Zulu site.
The reliance on equity to settle both trade creditors and legacy director remuneration highlights ongoing balance sheet stress, even as the company works to stabilise operations.
While the fundraising provides near-term breathing room, it comes at the cost of significant dilution to existing shareholders. The issue price of 0.03 pence represents a deep discount relative to historical trading levels, reflecting both market scepticism and the urgency of Premier’s funding needs.
Admission of the new shares to trading on AIM is expected on or around 27 January 2026.
Premier maintains that Zulu’s underlying fundamentals remain strong, citing its compliant mineral resource, infrastructure access and proximity to export markets. However, the project’s success now hinges on whether the newly acquired flotation plant can finally convert geological potential into sustained commercial output.
For investors, the coming months will be critical as Premier attempts to move beyond repeated funding rounds and commissioning updates towards stable production and revenue generation.
