Aim-listed Premier African Minerals has announced a subscription for 1.21-billion new ordinary shares at an issue price of 0.17p apiece to raise £2-million on or about April 17.
The company will use the proceeds for working capital and to finalise changes to the material flow through the flotation plant of the Zulu lithium and tantalum project, in Zimbabwe, which is in the process of being commissioned.
The changes to the plant will eliminate restrictions on potential spodumene concentrate production and ensure the plant is able to efficiently function according to design tonnage.
Premier expects the required piping and valves in this regard to be fitted by the end of April.
Meanwhile, the company continues to engage with Zimbabwe-based lenders for working capital facilities, which will be easier to secure once the Zulu plant can demonstrate a steady state of production.
The Zulu project comprises 14 mineral claims covering a surface area of 3.5 km2.
The latest mineral resource statement on the project states an indicated and inferred resource of 24-million tonnes grading 0.43% lithium oxide and 42% tantalum pentoxide.