AIM-listed Premier African Minerals has announced a subscription of 2.7 billion new ordinary shares to raise approximately £540,000 before expenses, at an issue price of 0.02p per share.
This development follows the January 21 announcement that a proposed £3.5-million fundraising via a placing and retail offer would no longer proceed.
Despite this, the company emphasized the importance of sustaining essential operations at its Zulu lithium and tantalum project in Zimbabwe.
Premier confirmed its ongoing engagement with its prepayment and offtake partner, working collaboratively to address factors that could create uncertainties.
The company acknowledged that its financial position remains unchanged from previous disclosures, noting that this subscription is an interim measure that does not fully resolve its short-term funding needs.
“This subscription will provide working capital to support essential operations at Zulu and initiate infrastructure preparations, including the installation of additional float cells,” said Premier CEO George Roach on January 24. He added that the funds will also assist in plant readiness for a planned limited test run.
Roach further confirmed that several previously planned management and board changes are expected to proceed.
Premier remains committed to advancing its Zulu project, which is a key component of its lithium and tantalum development strategy in Zimbabwe.
