Premier African Minerals Ltd (AIM:PREM, OTC:PRMMF) has secured about £500,000 in fresh funding through a direct share subscription, but the market reaction was downbeat.
The shares fell 7% to 0.07p in early trade and are now down 84% since January.
The company issued 869.6 million new shares at 0.0575p each to provide short-term working capital.
The money will be used to keep operations ticking over at both Premier and its Zulu lithium and tantalum project in Zimbabwe, including buying essential consumables for the camp.
It will also help fund early preparation work for the new 15–20 tonne-per-hour flotation plant supplied by Xinhai, which Premier hopes will finally allow Zulu to produce saleable lithium concentrate at commercial grades and recoveries.
Director Graham Hill said the cash gives the company breathing room to support “essential operational requirements” while it works toward installing and commissioning the Xinhai plant.