Premier receives £1,2 million non-refundable deposit
PREMIER African Minerals has received a non-refundable deposit of £1,2 million from Suzhou TA&A Ultra Clean Technology Co Ltd as part of a conditional subscription agreement between the two firms.
At present, Premier is undertaking Definitive Feasibility Studies (DFS) at its Zulu Lithium and Tantalum project in Matabeleland South.
Suzhou is a China-based company principally engaged in the research, development, production and sale of anti-static ultra-clean products.
Last week, Premier announced a conditional subscription for new ordinary shares by Suzhou to raise £12 million before expenses at an issue price of 0,4 pence per new ordinary share for the ongoing Definitive Feasibility Study at Zulu Lithium and Tantalum project in Matabeleland South.
In a statement, the mining group confirmed receiving the £1,2 million non-refundable deposit by Suzhou as part of their conditional agreement.
“Premier is pleased to confirm receipt of £1,2 million, the non-refundable deposit that Suzhou TA&A Ultra Clean Technology Co Ltd was required to pay as part of their conditional subscription agreement as set out in our announcement on 8 March 2022,” it said.
The subscription fully funds the completion of DFS that is underway at Zulu.
Premier said the subscription affords Suzhou additional rights such as the right to negotiate their future involvement and/or investment in support of the project.
Among other expectations, the mining concern said it anticipates active involvement and expertise from Suzhou in the development of the DFS for the Zulu project.
Premier chief executive officer Mr George Roach was quoted expressing gratitude over the latest development.
“I am delighted to accept this subscription from Suzhou TA&A, and particularly that this makes available to Premier a wealth of expertise in this industry while aligning future offtake and mine development with Yibin Tianyi Lithium Industry Co Ltd, a major producer of Lithium Hydroxides, financier and take-off partner for the Manono Lithium and Tin project and who have completed long term spodumene off-take agreements with Pilbara Minerals Limited,” he said.
Mr Roach said his organisation looks forward to welcoming a new board member who
will be nominated by Suzhou and active involvement from Suzhou in the DFS,
particularly in the area of test work and flow sheet development.
He said developments within the lithium industry have been at a rapid pace, which is
often difficult to ascertain and agree value.
“This subscription that results in Suzhou TA&A holding an important stake in Premier,
affords our shareholders (including Suzhou TA&A) with the opportunity to accelerate the
DFS and at the same time negotiate an equitable path to future development.
“The Subscription also allows Premier to be in control of its own destiny and affords an
opportunity to develop downstream beneficiation of spodumene through the retention of
not less than 50 percent of the off-take rights to production from a future mine,” he
said.-The Chronicle
