Premier African Minerals Ltd (AIM:PREM, OTC:PRMMF) has raised £2.4 million before expenses via a 0.23p ordinary share offer to fund the Zulu Lithium and Tantalum Project.
The equity round was joined by two institutional investors.
Premier African is on track to target revenue-generating production by February 2024 following the installation of the 55-tons-per-hour ball mill and other associated structures which is expected to be completed by late January/early February 2024.
In addition to the funding round, Premier African In addition, has conditionally settled the payment of $2.5 million (£2 million) in invoices through the issue of new ordinary shares to the Zulu open pit mining contractor JR Goddard Contracting for 0.26p each.
George Roach, chief executive of Premier African, commented: "The subscription and the contractor settlement should see Zulu through to production in February 2024.
“We are deeply encouraged that the subscription was taken up by two institutional investors with one of the investors having supported the Company previously.
“We believe that the attraction of further institutional investment into Premier demonstrates the underlying value of Premier.
“We would be remiss if we did not also express our appreciation to our mining contractor for their willingness to accept settlement of invoices in Premier shares.”