Premier African Minerals has raised approximately £550,000 before expenses through a share subscription, as it works to keep operations running while negotiations with its Chinese partner Canmax continue.
The AIM-listed miner is issuing 4 billion new ordinary shares at an issue price of 0.01375 pence each to complete the fundraise.
Premier said the proceeds will help maintain operational continuity across both the company and its Zulu Lithium and Tantalum Project in Zimbabwe, following its recent update on the project. The board added that constructive discussions are ongoing with Canmax Technologies over an extension to the long stop date of their arrangement.
The Canmax saga has dragged on for years with Premier not being able to produce the required level of lithium nor pay the penalties for failing to do so.
Graham Hill, Managing Director, said: “This funding provides important working capital to contribute towards ongoing operational requirements at Zulu, including the continuation of mining and stockpiling activities, while the Company progresses its constructive discussions with Canmax regarding an extension of the Long Stop Date.
The Board remains firmly focused on advancing Zulu towards sustained production and commercial operation and believes the Subscription will support continued progress and preparations for the next production and optimisation campaign once a revised operating timetable has been confirmed.
The Company will provide shareholders with a further update once discussions with Canmax have concluded or upon any material development.”