Premier African Minerals halts £3.5 mln fundraising efforts
HARARE – Premier African Minerals Limited, a controversial AIM-listed junior player in the local mining sector, has announced that it will not proceed with its proposed fundraising of £3.5 million through the issuance of new ordinary shares. This decision comes after the company raised only £1.2 million through a recent placing, falling short of the target required to move forward with the fundraising initiative.
The company had initially structured the fundraising to include both a placing and a retail offer, contingent upon raising the full £3.5 million. However, following an accelerated bookbuild, it became clear that shareholder applications under the retail offer were insufficient to meet the target amount. Consequently, the board, in conjunction with its brokers, has opted to halt the current fundraising efforts.
In light of this setback, Premier is now actively considering a restructuring of the fundraising strategy. This may involve a variation in the issue size and the exploration of alternative funding options. The company assured stakeholders that no shares have been issued in connection with the halted fundraising, and the company’s financial position remains stable as previously disclosed.
Despite the fundraising challenges, Premier is maintaining a positive outlook. The company has reaffirmed its commitment to the Zulu Lithium and Tantalum Project, with Canmax Technologies Co., Ltd. expressing their intention to collaborate with Premier to ensure the successful commissioning and optimisation of the project’s primary and secondary flotation plants.
Canmax further confirmed that the basis of their prepayment under the agreement is unchanged and remains for the delivery of SC6 [lithium] under an offtake agreement and not the ownership and/or management of Zulu.
George Roach, CEO of Premier, expressed confidence in the company’s ability to complete the optimisation and final commissioning of the spodumene float circuit at Zulu. He highlighted the extensive test work completed in late 2024 and the acquisition of additional float cells as key factors supporting the project’s success.-finx
