Premier African Minerals shares were trading down over 10% on Tuesday after announcing the results of a placing.
Premier has completed yet another placing to keep hopes for success at its Zulu lithium mine alive as the company ploughs ahead with a schedule of works designed to bring the plant up to the standards required by an offtake agreement with Chinese partners.
The company has raised £1.25m at 0.16p per share to fund the optimisation of the Zulu plant which has been dogged by delays and questions about the grade of its offtake.
Premier African Minerals shares were down 9% at the time of writing, trading at the placing price of 0.16p.
“The Company provided a full discussion on the Zulu plant performance in our announcement of 8 May 2024. The Company expects that periodic updates will be provided on the overall plant performance until such time as a steady of state of continuance production has been achieved, Premier expects thereafter to begin providing quarterly production reports for Zulu from Q3 of 2024,” said
“Over and above this, we are encouraged with mining operations and the ROM ore grades that consistently exceed our resource estimate and this is mitigating for the moment, the ore sorter deficiencies. This also supports the review of overall operations and production costs and the likely reduced production costs discussed below.
“Inspections required as a prelude to export have commenced, and this precedes any export. We do not expect any delays in regard to export permits required.
“This was confirmed in recent meetings with Government of Zimbabwe when the issue of RHA Tungsten Private Limited (“RHA”) was also discussed and we are encouraged that there is now likely resolution of this issue. The rising price of Tungsten is noted”.
