HARARE, June 11 (NewsDay Live) -Premier African Minerals Ltd shares experienced significant volatility, oscillating between a 4% rise and a 14% loss, after the company successfully raised approximately US$1.02 million (£800,000) to support its Zulu lithium and tantalum project in Matabeleland South.
The AIM-listed miner confirmed it had completed a subscription for 4 billion new shares priced at roughly 0.026 cents (0.02p) each. The proceeds are earmarked for essential operational activities at the Zulu site and general working capital requirements.
The capital injection follows a major operational milestone reached this past Wednesday, when Premier announced the first production of spodumene concentrate from the project's newly commissioned flotation plant.
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Management stated that these fresh funds will allow the company to continue optimization work on the plant and refine operating parameters. The funding also provides critical "breathing room" to manage operating expenses and essential creditors while the project moves toward sustained commercial production.
Managing director Graham Hill noted that the flotation circuit is currently producing concentrate as expected. He added that while operational stability has improved, optimization work remains ongoing to ensure the project's long-term success.
Zulu remains Premier’s flagship asset and is under close scrutiny by investors following a series of technical challenges and delays. The company’s current focus is on improving concentrate quality and recovery rates to establish consistent production from the significant lithium resource.
The new shares are expected to begin trading on the AIM market on June 17.