After failing to secure the required amount during a recent attempt at a fundraise, Premier African Minerals has completed a much smaller placing at a much lower level. The amount raised is being seen as ‘interim’ financing, and the company will need to explore other options.
Premier African Minerals has secured £540,000 through a subscription of 2.7 billion new ordinary shares at 0.02p per share. Today’s placing follows a botched attempt to raise £3.5m last week to complete the necessary work at their lithium plant to meet the terms of a financially crippling offtake agreement.
Shareholders seem to be turning their backs on Premier African Minerals.
The company is in ongoing discussions with its prepayment and offtake partner, who recently reaffirmed their commitment to the Zulu project on 20 January. Premier is working to resolve any remaining uncertainties with this partner and continues to maintain essential operations at the Zulu Lithium and Tantalum project.
However, the company notes that this funding round is a temporary measure and does not fully meet the group’s immediate financial needs. This would suggest the next placing could be substantially lower than 0.02p if they were unable to secure the required amount at this level, and the cash raised today will do little more than keep the lights on.
“This subscription will provide working capital to both support essential operational requirements at Zulu and also allow an initial start to the infrastructure and other associated requirements for the installation of the additional float cells and assist in plant readiness for the limited test run that has been planned,” said George Roach, CEO.
“I would also like to take this opportunity to confirm that the planned management and board changes discussed in our previous announcements are expected to proceed and a further announcement in this regard will be made at the appropriate time.”