Premier African Minerals Ltd (AIM:PREM), the mining company, is set to issue £4,000,000 worth of shares at 0.35p each to help fund production at its Zulu lithium and tantalum projects in Zimbabwe, a company statement revealed.
Targeting revenue-generating production by November of this year, Premier African will use part of the shares issued to pay two of its contractors involved with the instalment and development of its open pit mine until the end of the year.
George Roach, chief executive officer said: "Based on current projections this funding and the arrangements set out below is expected to see Zulu pass through the current interim remedial situation and allow the company to reach target nameplate production at Zulu.
“I am appreciative of the support from our investors and from our contractors who effectively are making their own statement of confidence going forward with this investment.”
Shares in Premier African Minerals have been down a little over 10% over the last five days and closed on Thursday at 0.39p.