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  • Writer's pictureMark Watson-Mitchell

Premier African Minerals – £4m being raised at 0.35p a share to accelerate Zulu Project

Premier African Minerals – new funding sees £4m being raised at 0.35p a share to accelerate Zulu Project to revenue-generating production by November

Premier African Minerals (LON:PREM), which is a multi-commodity mining and natural resource development company focused on Southern Africa with its RHA Tungsten and Zulu Lithium projects in Zimbabwe, has today announced a placing and subscription through CMC Markets and Fox-Davies Capital to raise a total of £4m before expenses at 0.35p per share.

The group has a diverse portfolio of projects, which include tungsten, rare earth elements, lithium and tantalum in Zimbabwe and lithium and gold in Mozambique, encompassing brownfield projects with near-term production potential to grass-roots exploration.

The new funding is being raised for the ongoing Zulu Lithium and Tantalum Project Pilot Optimisation where the company is targeting revenue-generating production by November 2023.

The proceeds will be used to meet the costs associated with the interim mill installation and associated thickener that is expected to collectively increase production to approximately 50% of design capacity from October 2023, ongoing pit development to clear the weathered zone, and general operational costs to cover the current interim period until the end November when first revenues are anticipated at Zulu.

Contractor Payments In Shares

The company has also arranged with two of its major suppliers that they will accept a limited number of invoice payments until the end of this calendar year by way of the issue of new shares at the middle market price the day before settlement.

The two biggest costs associated with the Zulu ongoing development are in respect of the open pit mining contractor, JR Goddard Contracting and the Zulu design, procurement, installation, and commissioning contractor, Stark International Projects.

CEO George Roach stated that:

"Based on current projections this funding and the arrangements is expected to see Zulu pass through the current interim remedial situation and allow the company to reach target nameplate production at Zulu.

I am appreciative of the support from our investors and from our Contractors who effectively are making their own statement of confidence going forward with this investment."


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