Premier enlists UK firm for Zulu lithium advisory

PREMIER African Minerals has appointed United Kingdom-based VSA Capital as its corporate advisor to assist in mapping the way forward regarding corporate and financing options for its Zulu lithium and tantalum project.

The appointment of VSA Capital, an investment and banking broking firm headquartered in London, United Kingdom, focused on natural resources, transitional energy and technology, comes when Premier is seeking strategic guidance on challenges facing its Zulu project in Zimbabwe.

Premier recently announced that it was considering among other strategic options a possible sale of the lithium and tantalum project in Zimbabwe due to operational and funding challenges facing the group.

Zulu lithium is one of many lithium projects under development in Zimbabwe, the world’s 6th largest producer with only a handful of active projects, among them Arcadia and Bikita Minerals.

Lithium is considered the new energy mineral for the future, given its importance in the manufacture of clean energy electric vehicles, a key strategy for reducing harmful emissions that drive global warming.

Broadly, mining is a strategically key part of Zimbabwe’s economy given its contribution to the gross domestic product, estimated above 12 percent, while accounting for more than 80 percent of exports.

In October, Premier chief executive officer Mr George Roach said the company was not clear about when profitable production would be achieved at Zulu due to disappointments related to poor recoveries and grade of spodumene concentrate (SC6) the plant had achieved.

The poor design of the comminution circuit has resulted in a delay of nearly a year for the commissioning of the float plant section at Zulu in March this year.

In its latest update, Premier said: “The company is pleased to announce that it has appointed VSA Capital Group plc (VSA) as a corporate advisor to assist the company with progressing its strategic objectives and in particular the corporate and financing options to develop the company’s flagship Zulu Lithium and Tantalum project in Zimbabwe.”

The mining group has announced that recommencing production should be seriously considered if the alternative strategic options for Zulu under investigation and negotiation fail.

Premier has been in discussions with an unnamed Chinese engineering, procurement and construction management company that has built floatation plants internationally with one of these plants currently in operation within Zimbabwe and which has processed ore similar to that at Zulu.

Mr Roach said: “We are delighted to have appointed VSA who has a track record in working and successfully concluding natural resource deals with Chinese-based companies.

“Premier strongly believes that given the experience that VSA brings from the natural resources sector, particularly in battery minerals and in the continents of Africa and Asia, that they will provide invaluable support to Premier as we continue our corporate objectives as reaffirmed in our announcement on November 6 2024.”

In its unaudited interim financial results for the six months ended June 30, 2024, Premier incurred an operating loss of US$12 million — and this was principally due to the ongoing overheads and administration costs associated with the construction, installation and optimisation of Zulu.

Cash at hand as at the period under review, the group’s cash at hand amounted to US$0,243 million.

Recently, Premier announced a subscription of over 1,7 billion new ordinary shares to raise an estimated £550 000 (equivalent to US$719 000) before expenses.

Early this year, the mining group announced that it was seeking £2,4 million (US$3,15 million) to fund the Zulu project that has been undergoing plant modification.-herald