Premier African Minerals Ltd (LON:PREM) saw their share price boom following 5.1 million USD investment from Cadence Minerals Ltd (LON:KDNC).
As markets opened this morning, their share price rallied from 14-27p, and then leveled out again at 24p – signifying a growth of 74.07 percent.
The news came after a conditional heads of terms deal was struck with their counterparts, Cadence Minerals, who have acquired a 30 percent stake in Premier African Minerals’ wholly owned subsidiary, the Zulu lithium and tantalum project.
“This conditional HoT with Cadence underlines the value and potential of the Zulu project, with a post-investment value of $17-million, reaffirming Premier’s belief that the project is potentially one of the leading hard-rock lithium exploration projects on the London market”, said PAM CEO, George Roach.
The 5.1 million USD from Cadence will be used to fund the definitive feasibility study on the Zulu project – this following a scoping study last November, which reported an estimate of 20 million tonnes of mineral resource.
In addition to the recent investment from Cadence, PAM have secured a 300,000 USD loan from a trust related to their CEO George Roach. The company have said they will repay the loan and fees in full, within five days of the loan’s maturity. The loan has been secured against the company’s shareholding of just over six million shares in ARC Minerals Limited (LON:ARCM).
Going forwards, PAM will carry out the Zulu project in Zimbabwe and take advantage of the recently changed political conditions in the country. Projections look promising, at least in comparison to other commodities and resource extraction firms in the market.The end goal is to turn the conditional heads of term into a binding trade agreement with Cadence Minerals.