Premier African Minerals Ltd. said Thursday that it will raise 1 million pounds (US$1.4 million) via a discounted share placing, and that it will put the proceeds toward its definitive feasability study at the Zulu lithium project in Zimbabwe.
The London-listed mining company said it will issue 625 million new ordinary shares at 0.16 pence a share, an 11% discount to Wednesday’s closing price.
“It is worth noting that this placement today represents a nominal dilution of approximately 3.5% and is a small price to pay for retention of 100% of Zulu and the potential upside from the Exclusive Prospecting Order,” Chief Executive George Roach said.
Premier is a multi-commodity mining and natural resource development company focused on Southern Africa with its RHA Tungsten and Zulu Lithium projects in Zimbabwe.
The company has a diverse portfolio of projects, which include tungsten, rare earth elements, lithium, and tantalum in Zimbabwe, encompassing brownfield projects with near-term production potential to grass-roots exploration. The Company holds 5,010,333 shares in Circum Minerals Limited, the owners of the Danakil Potash Project in Ethiopia, which has the potential to be a world class asset.
In addition, the Company holds a 19% interest in MN Holdings Limited, the operator of the Otjozondu Manganese Mining Project in Namibia.