RESOURCE outfit Premier African Minerals (Premier) seeks to raise £4 million (US$5,03 million) before expenses, through placement and direct subscription for the ongoing Zulu lithium and tantalum project pilot optimisation.
According to a shareholder update, Premier on August 25, 2023 issued by way of a placing and direct subscription, 1 142 857 143 new ordinary shares of nil par value at a placing price of 0,35 pence per placing share.
The placing shares will, when issued, rank pari passu in all respects with the existing ordinary shares.
The placing was undertaken by CMC Markets UK Plc acting as the company's sole placing agent in respect of the placing, and the direct institutional subscription was arranged by Fox-Davies Capital Limited.
“Based on current projections this funding and the arrangements set out below is expected to see Zulu pass through the current interim remedial situation and allow the company to reach target nameplate production at Zulu,” the firm’s chief executive officer George Roach, said.
“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."
The lithium firm said the two biggest costs associated with Zulu’s ongoing development are in respect of the open pit mining contractor, JR Goddard Contracting (Pvt) Ltd and the Zulu design, procurement, installation and commissioning contractor, Stark International Projects Limited.
It said the contractors had agreed to collectively accept payment of a limited number of future invoices until the end of December 2023 in new ordinary shares of the company at the closing middle market price on the day prior to settlement.
The placing has been arranged within the company’s existing share authorities.
“Premier intends to use the proceeds of the placing principally to assist with the ongoing optimisation of the plant at Zulu and general working capital,” it said.
“In particular, Premier anticipates using the proceeds 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 of November when first revenues are anticipated at Zulu.”
Following the issue of the placing shares, the company’s issued share capital consists of 23 978 906 266 ordinary shares, with voting rights.