Premier African Minerals has completed a further £1 million equity subscription, its second fundraising in just over a month, as the company reports steady progress on electrical and piping works at the Zulu Lithium flotation plant ahead of a targeted Q2 commissioning.
By Rudairo Mapuranga
The London-listed miner issued new shares at 0.0136 pence each, a slight premium to the 0.0126 pence price used in late March and again in mid-April, when Canmax converted interest and contractors were paid in shares. The latest raise adds approximately 7.35 billion new shares to a capital base that has swelled to more than 25 billion ordinary shares.
According to today’s update, construction of the new Xinhai spodumene flotation circuit remains on track, with electrical switchgear and control panels now delivered, installed, and awaiting final testing by the manufacturer. Cabling to the switchgear is complete, and connections to plant drive motors are at an advanced stage. Piping for both the concentrate froth pump and the tailings pump is nearing completion, while the primary air manifold for the flotation cells is well advanced.
Commissioning activities have begun across the crushing and milling circuit, with conveyor systems being brought back online. Bypass chutes designed to replace previously used sorting equipment have successfully completed testing.
Managing Director Graham Hill said the engineering team’s technical capability and commitment had been strong, and that completion of the new flotation plant, together with targeted upgrades to existing operations, would position Zulu to demonstrate consistent, quality spodumene concentrate production.
The Dilution Reality
For all the operational encouragement, the financial arithmetic remains brutal. Premier’s total issued share capital now stands at approximately 25.37 billion shares following the 1.9 billion share issuance to Canmax and contractors on 17 April. The latest £1 million subscription, which the company says will support ongoing commissioning and optimisation, adds more than seven billion shares at a nominal premium.
Investors who held shares six months ago have seen their ownership stake diluted by roughly 60–65 percent, assuming no participation in successive fundraises. Each new cash call or in-kind conversion, whether to Canmax, to contractors, or to settle invoices, further erodes the claim of existing shareholders on any future value.
Yet the company has little choice. With no meaningful revenue from Zulu and creditors to manage, equity remains the only readily available currency. The alternative, halting construction, would almost certainly kill the project.
