Zulu Remains on Hold as Premier Seeks Financing and Strategic Options
Operations at London Stock Exchange-listed mining and exploration junior Premier African Minerals Limited’s Zulu Lithium and Tantalum Project remain paused as the company continues to navigate financial and operational challenges, Mining Zimbabwe can report.
By Rudairo Mapuranga
Despite a promising mineral resource update and ongoing test work showing potential improvements in spodumene recovery, the project remains in limbo due to a lack of necessary funding.
Premier African Minerals has released a statement confirming that further interpretation of test results suggests that, with minor reagent adjustments, the plant could produce spodumene at acceptable grades and recoveries without significant changes to the current setup.
Additionally, fabricated inserts, once available, are expected to improve the spodumene grade and recovery. However, the central issue holding back the project’s full resumption is financing.
The company is exploring several options to secure the necessary funds, including the potential sale of the Zulu project, bringing in an investment partner through a partial sale, or entering into a joint venture.
Premier has also hinted at the possibility of self-funding an additional spodumene float plant to retain full ownership.
According to CEO George Roach, the primary challenge is achieving the required spodumene grade.
He said financing of the project is crucial for miners to benefit.
“The latest test work and resource update have reaffirmed that the primary challenge is achieving the required spodumene grade and recovery through the float plant. With the proposed fixes, we are hopeful that continuous operations can begin once the plant is back in operation for a limited trial run. However, for this to happen, proper financing is key,” he said.
The company plans a limited test run of 3 to 5 days using already-mined ore to prove the viability of the reagent adjustments and to allow potential investors to assess the plant.
Stakeholders have expressed frustration, particularly on social media, with some claiming that despite positive technical updates, the ongoing delays and lack of financing are undermining the project.
One shareholder commented, “Still closed and still no money to mine. George is a joke. Until new ownership takes 100% overall control, nothing changes with this investment.” Another echoed the sentiment, adding, “Some recognition that us shareholders have been shafted through dilution-to-oblivion wouldn’t go amiss, George.”
In contrast, some stakeholders remain cautiously optimistic, welcoming the recent updates.
“BOOM! Good RNS for once. Back to business,” one said, while others pointed out that Canmax, a key partner, may be voting against certain proposals, potentially complicating future developments.
Premier African Minerals continues to seek a viable financial solution, but until a deal is secured, the future of the Zulu Lithium and Tantalum Project remains uncertain.