BY Mthandazo Nyoni ZIMBABWE-focused miner Premier African Minerals has raised £800 000 (approximately US$1,1 million) via a placing, with the proceeds to be used at the Zulu Lithium and Tantalum projects in Zimbabwe.
The company said it had placed 500 million new ordinary shares at a price of 0,16 pence a share.
Premier owns the RHA Tungsten, Zulu lithium and tantalite projects in Zimbabwe.
The company intends to use the proceeds of the placing to assist with further funding of the ongoing works associated with the definitive feasibility study (DFS) at Zulu, the exploration of the exclusive prospecting order area surrounding Zulu and general working capital purposes necessary for the company.
Premier chief executive George Roach said progress at Zulu was good with over 2 000 metres of large diameter drilling having been completed and this “will allow first pass geotechnical analysis and provide the material for first ore sorting test work that will be undertaken in Germany from January 2022”.
“With the completion of this initial large diameter drilling, the ongoing resource drilling is expected to accelerate both within the existing declared resource estimate area and in adjoining extensions thereto, where we continue to intersect visibly well mineralised pegmatite intersections that give me confidence that we will see both an improved level of confidence in the declared resource estimate area, and important extensions thereto that should potentially see marked increases in the overall resource estimate,” he said.
“I have made reference to a number of ongoing negotiations intended to secure funding for the balance of the DFS underway at Zulu, against a small disposal of a direct interest in the project and assurance of mine build and off-take finance. Due diligence is being undertaken by more than one capable potential off-take partner.”
As much as Premier is under due diligence, so too are those seeking to conclude an off-take agreement with them, he said.
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Roach said although progress is good in his opinion, there is no certainty of outcome until final agreements are concluded and that is not the case at this time.
Despite COVID-19 Omicron-related delays at the laboratory, Roach said some limited assay results reaffirmed Premier’s decision to use a laser-induced breakdown spectroscopy (LIBS) system at Zulu.
The LIBS analysis set out in their announcement on October 12, 2021, with the independent SGS assay results will allow the company to complete the fine-tuning calibration process of the LIBS system such that “we expect reliable and rapid turnaround from future internal analysis that are conducted at Zulu”.
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