AIM Stock Exchange-listed mining and exploration junior, Premier African Minerals Limited, has secured approximately $4.35 million from a fundraising initiative, marking a crucial step toward restarting operations at its Zulu Lithium and Tantalum Project in Fort Rixon, Mining Zimbabwe can report.
By Rudairo Mapuranga
The fundraising effort includes a retail offer of $2.87 million through the issuance of 8.263 billion new ordinary shares at a price of 0.0275 pence per share, alongside a $1.5 million share placing. This ensures the company has the necessary capital to complete the final commissioning of the Primary Flotation Plant and purchase a Secondary Flotation Plant at the Zulu project.
The retail offer, part of Premier’s larger strategy to resume full-scale production at Zulu, comes at a 30% discount from the 15 January 2025 mid-market closing price. The success of the offer remains conditional on the new shares being admitted to trading on the AIM market of the London Stock Exchange by 23 January 2025.
Most of the funds raised will be directed toward critical operational needs, beginning with a 3-to-5-day test run of the plant. This phase is expected to cost $800,000 and includes the commissioning of the Secondary Flotation Plant. Additionally, $250,000 will go toward settling deferred VAT and other statutory obligations owed to the Government of Zimbabwe. Premier will also allocate $400,000 to cover overdue employee salaries and wages, and $180,000 will be used to pay suppliers of plant spares and maintenance costs.
The remaining balance from the fundraising will be used for partial payments to contractors and other creditors, facilitating the continuation of commercial operations at Zulu.
Alongside this, Premier has been negotiating with various creditors, suggesting they accept new shares as partial or full settlement of debts owed by the company and the Zulu project. The company expects these discussions to conclude shortly, with shareholders receiving updates on the issuance of settlement shares once agreements are finalized.
