Zulu Lithium secures £5m
BUSINESS REPORTER
Zulu Lithium Mine, a unit of Premier African Minerals, has received an additional £5 million in funding from Canmax Technologies, which is expected to help the company meet its goal of generating revenue by November this year while also increasing production capacity.
Premier confirmed the development in a statement released yesterday.
“Premier Africa Minerals Limited, is pleased to announce a conditional subscription for new ordinary shares by Canmax Technologies Co to raise £5m before expenses at an issue price of 0.35 pence per new ordinary share for the ongoing Zulu Lithium and Tantalum Project Pilot Optimisation where the company is targeting revenue generating production by November 2023.
“The subscription, together with the placing funds, funds remaining expected operational expenditure and any shortfall in remedial expenses not met by the plant supplier for first revenue forecast for November 2023. Subscription further not only confirms the commitment of Canmax, Premier’s largest shareholder, to the ultimate successful of Zulu, but is intended to facilitate increases in production capability,” reads part of the statement.
The lithium company said the open pit mining contractor, JR Goddard Contracting (Pvt) Ltd, and the Zulu design, procurement, installation, and commissioning contractor, Stark International Projects Limited, represent the two major expenses related to Zulu’s ongoing development.
It said the contractors had agreed to collectively accept payment of a limited number of future invoices until the end of December 2023 in new ordinary shares of the company at the closing middle market price on the day prior to settlement.
The placing has been arranged within the company’s existing share authorities.
“Premier intends to use the proceeds of the placing principally to assist with the ongoing optimisation of the plant at Zulu and general working capital,” it said.
“In particular, Premier anticipates using the proceeds to meet the costs associated with the interim mill installation and associated thickener that is expected to collectively increase production to approximately 50% of design capacity from October 2023, ongoing pit development to clear the weathered zone, and general operational costs to cover the current interim period until the end of November when first revenues are anticipated at Zulu.”
