Premier Africa Minerals to raise 4 million pounds
PREMIER Africa Minerals is in the market seeking to raise £4 million to fund ongoing Zulu Lithium and Tantalum Project pilot optimization, targeting revenue-generating production by November.
In an update on Friday (today), Premier said it intends to use the proceeds of the placing principally to assist with the ongoing optimisation of the plant at Zulu and general working capital.
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 percent of design capacity from October this year, 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.
“The Board of Premier African Minerals Limited is pleased to announce a placing and subscription today to raise £4,000,000 before expenses at an issue price of 0.35 pence per new ordinary share for the ongoing Zulu Lithium and Tantalum Project (“Zulu”) Pilot Optimisation where the Company is targeting revenue generating production by November 2023.
“Premier has today issued by way of a placing and direct subscription (“Placing”), conditional on admission, 1,142,857,143 new ordinary shares of nil par value (“Placing Shares”) 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,” reads part of the update.
Premier chief executive officer, Mr George Roach said that based on current projections, the 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,” said Mr Roach.
According to the update, the two biggest costs associated with Zulu 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 who have now both 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.
Application will be made for the Placing Shares to be admitted to trading on AIM and admission is expected to take place on or around 31 August 2023.
The Placing has been arranged within the Company’s existing share authorities.-chronicle
