Premier African Minerals Limited has announced a major development in its flagship Zulu Lithium and Tantalum Project in Insiza, Matabeleland South, after settling US$1.1 million worth of contractor invoices through equity. The move comes as part of the company's broader strategy to enhance plant performance and secure the project's long-term viability.
In a statement released on Wednesday, Premier revealed that it had successfully raised £1.575 million (before expenses) through a share subscription priced at 0.012 pence per new ordinary share. The company said the funding would be channelled into improving production capabilities and stabilising operations at the Zulu project, which is regarded as one of Zimbabwe's most promising lithium ventures.
As part of the deal, the company issued approximately 6.17 billion new ordinary shares to settle the contractor debt. This equity-based settlement aligns with Premier's capital strategy to reduce cash outflows while focusing on completing and optimising its primary flotation plant. The company is also preparing a secondary flotation circuit as a contingency measure should the main plant underperform.
Premier noted that the fresh capital will be directed toward completing the installation and commissioning of inserts in the cleaner section of the flotation plant, which are expected to increase concentrate retention time and, ultimately, improve grade and recovery rates. Simultaneously, work is progressing on the development of an alternative spodumene flotation plant to support continued production efficiency. A portion of the funds will also be used to cover selected operational costs and to clear other outstanding liabilities.
Earlier this year, the company disclosed that it required around US$1.6 million to cover obligations including deferred Value Added Tax payments and statutory fees. It sought to raise a combined total of over US$4 million through a retail offer and placement of ordinary shares to meet its financial needs.
Commenting on the latest developments, Premier CEO George Roach expressed confidence in the project's trajectory. He said the plant upgrades and the introduction of a secondary flotation circuit were progressing as scheduled and within budget. He noted that extended test work had reinforced confidence in the ability of the system to deliver expected recovery and grade targets.
Roach also highlighted that the company had used the past several months to investigate potential additional revenue streams at the Zulu site. These include high-purity quartz extraction, ore sorting options, and the recovery of tantalite, which is the primary tantalum-bearing mineral associated with the deposit.
"Pegmatites such as those at Zulu are rich in a variety of industrial minerals beyond spodumene. In time, these additional products will contribute significantly to the overall profitability and sustainability of the project," Roach said.
As the Zulu Lithium Project continues to evolve, Premier African Minerals' latest moves reflect a strategic blend of financial prudence and operational focus aimed at securing Zimbabwe's place in the global lithium supply chain.
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