Premier African Minerals Ltd (AIM:PREM, OTC:PRMMF) said it is reviewing all its options to move forward with its Zule lithium project, including a complete or partial sale.
Another option under consideration is the potential installation of an additional spodumene float plant based on self-funding and retention of ownership.
Discussions have been held with a Chinese firm that has built floatation plants internationally with one of these plants currently in operation within Zimbabwe and which has processed ore similar to that at Zulu.
An additional floatation plant is available, and Premier would need to fund the purchase price and civils and integration costs that are estimated at US$400,000 and three months from the date of order to operation.
In terms of funding, Zulu has incurred significant debt and while much of this could be structured over a period, a recommencement of operations will require further funding.
In the board's opinion, recommencing production should be seriously considered if the alternative strategic options for Zulu under investigation and negotiation fail.
Significant creditors also need paying now, it added.
Operating losses in the six months to June 2024 were US$12.027 million with cash in hand at the end of the period of US$0.243 million.
Shares dropped 38% to 0.03p.