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London Stock Exchange-listed mining and exploration junior Premier African Minerals Limited (Premier) has announced a new subscription to raise £600,000 before expenses, which will be directed toward the Zulu Lithium and Tantalum Project.
By Rudairo Mapuranga
In addition, the company has settled US$0.3 million in contractor invoices for the Zulu Project by issuing 1.84 billion new ordinary shares at a price of 0.0125 pence per share, Mining Zimbabwe can report.
The funding comes at a critical time as Premier continues its efforts to secure a fully funded solution for the Zulu Project while engaging with current and potential investors, including discussions with Zulu’s prepayment and offtake partner. The raised funds will primarily be used for essential operational requirements at the Zulu camp, as well as for Premier’s general working capital needs.
The company issued 4.8 billion new ordinary shares through a direct subscription, bringing the total new shares issued, including the settlement shares for contractor payments, to 6.64 billion. These new shares are expected to be admitted for trading on AIM on or around 13 March 2025.
This subscription follows Premier’s ongoing financial challenges, with the company seeking to meet operational needs while working on a long-term financial solution for the Zulu Project. Premier’s CEO, George Roach, has previously expressed confidence in the project’s potential despite delays and financial hurdles.
However, the continuous issuance of new shares has led to rising concerns among shareholders about dilution, which has significantly impacted share prices.
Shareholders have expressed growing frustration with Premier’s financial strategy, especially the repeated issuance of new shares at low prices. The issuance of 6.64 billion new shares at an all-time low share price has sparked discontent, with many investors feeling that the company is not addressing its core financial issues.
One shareholder commented,
“A casual 6.6 billion shares at all-time lows, sweet,” referencing the continued decline in share value.
Another said, “You’ve grabbed PREM by the balls, and all you do is post the same RNS of the next dilution. When will you let someone else take over who knows what to do?”
Despite the criticism, Premier’s management remains focused on securing the best financial outcome for the Zulu Project and its stakeholders. The company has emphasised that the new funding will enable it to cover essential consumables at the Zulu camp and sustain operations while it continues discussions for a long-term financing solution.
The ongoing dilution of shares has been a source of concern for investors, who feel that repeated share issuances erode their investments’ value. One frustrated shareholder remarked,
“How is George Roach still at the helm of this company? I sold my shares when we were close to £0.1 and made some good coin, but I wish I’d sold the rest too.”
As Premier continues to navigate its financial challenges, it faces increasing pressure from shareholders to deliver results and secure more stable financing options for Zulu. The company remains optimistic about the potential of its flagship project, but investor confidence is clearly wavering as share value continues to decline amid ongoing dilution.
With the admission of new shares scheduled for mid-March, Premier is focused on ensuring that operations at Zulu can resume in full. However, the company will need to balance its need for funding with the concerns of its shareholders, who have been vocal about the impact of frequent dilutions on their investments.
While Premier is pleased with the current funding round, the ongoing dialogue with stakeholders and potential investors will be crucial for the company’s long-term sustainability and the success of the Zulu Lithium and Tantalum Project.
