Premier African Minerals Ltd (AIM:PREM, OTC:PRMMF) shares dropped 32% in early trading on Friday after the company raised £600,000 through a heavily discounted share issue.
The funds were secured via a direct subscription at 0.0125 pence per share—well below recent trading levels of around 0.02p—with proceeds earmarked for operational needs at its Zulu Lithium and Tantalum Project.
In addition to the fundraising, Premier also settled $300,000 (£230,000) of contractor invoices by issuing 1.84 billion new shares at the same price.
In total, 6.64 billion new shares are being added to the market, increasing concerns about potential shareholder dilution.
The company remains in talks with stakeholders and potential investors to secure long-term funding for Zulu, with negotiations ongoing with its prepayment and offtake partner.
Premier stressed that maintaining operations at both group and project level remains a priority while efforts to secure a fully funded solution continue.
Earlier on, the stock was down 0.006p at 0.013p, valuing the business at £6 million.