- Premier African Minerals Limited is raising £600 000, to support operations, specifically targeting the Zulu Lithium and Tantalum Project
- The company will issue new ordinary shares at a price of 0.0125 pence each
- Funds raised will be directed towards essential consumables and general working capital to sustain operational momentum
Harare-Premier African Minerals Limited is raising £600,000 (approximately US$775,464) to support its operations, specifically targeting the Zulu Lithium and Tantalum Project ("Zulu") , issuing new ordinary shares at a price of 0.0125 pence each.
The funds raised will primarily be directed towards essential consumables and general working capital, enabling Premier to sustain its operational momentum while pursuing a fully funded solution for the Zulu project.
‘’Following the announcement on 6 March 2025, it remains of fundamental importance that Premier continues to support all essential operational requirements at both Premier and Zulu while Premier is actively seeking to secure a fully funded solution for Zulu and continues engaging with both existing stakeholders and new potential investors, with a particular focus on Zulu's prepayment and offtake partner with whom detailed discussions continue.,’’ the company said.
This follows an indication in a statement by the company on the 5th of March that they are considering a fully funded solution to overcome its financial challenges, including high overhead and administration costs related to construction and optimization.
Since July 2024, the Zulu plant has been inactive, which has resulted in its struggle to produce enough spodumene to fulfill its off-take agreement with Canmax International.
Spodumene is a mineral that is an important source of lithium a key component in the production of batteries , particularly for electric vehicles and mobile devices.
As of 28 February 2025, Premier reported unaudited total group liabilities of $64.327 million, which includes $46.353 million owed to Canmax Technologies Co. Ltd under the Offtake and Prepayment Agreement, alongside unsettled interest of $11.7 million while , trade creditors, including unpaid salaries, account for roughly $17 million.
Thus making Premier's liabilities exceed assets by $47.815 million, highlighting its precarious financial situation.
To maintain operations at both Premier and Zulu, the company has issued 4.8 billion new ordinary shares through a direct subscription, bringing the total number of new shares issued to 6.64 billion, which will begin trading on the London Alternative Investment Market (AIM) around the 13th of March 2025.
Premier also disclosed that it has settled $300,000 in contractor invoices for the Zulu project by issuing 1.84 billion new shares at the same price of 0.0125 pence each.
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