Premier African Minerals Ltd (AIM:PREM) is to get a £5 million cash injection for the Zulu lithium and tantalum development in Zimbabwe from major shareholder Canmax.
Production is scheduled for November and the cash will tide Premier African over as operations ramp up until the first revenues, it said in a statement.
On completion of the subscription, which was at 0.35p a share, Canmax will be interested in 17.4 % of Premier’s enlarged issued share capital.
George Roach, Premier’s chief executive, said: "Our interests are aligned, our intentions are clear. Zulu must produce now, and we must look to expand the capacity. We deeply appreciate this subscription, that is as positive a statement of support and alignment as we could ever have asked for."
Canmax is listed on the Shenzhen Stock Exchange with a market capitalisation of ¥22.9 billion (£2.1 billion) and has a track record of providing substantial shareholder support, Premier African added.