Premier African Minerals Ltd (AIM:PREM, OTC:PRMMF), the miner developing the Zulu Lithium and Tantalum Project in Zimbabwe, has raised £1 million through a share placing at 0.0136p each, as the company pushes to complete commissioning of a new processing plant in the second quarter.
The discount and dilution prompted 11% to 0.016p, having lost 96% of their value over the past year, leaving the company valued at just £3.4 million.
The capital will go towards completing the new Xinhai Flotation Plant at Zulu Lithium, covering operating costs at the site, managing creditors, and providing general working capital.
On the ground in Zimbabwe, construction of the flotation plant, which will process spodumene, the lithium-bearing mineral extracted at Zulu, is described as progressing well.
Electrical switchgear and control panels have been delivered, installed and cabled, with the switchgear manufacturer expected on site shortly to carry out final testing.
Piping connections to the concentrate and tailings pumps are nearing completion, and installation of the primary air manifold supplying the flotation cells is well advanced.
Commissioning work has begun across the crushing and milling circuit, with conveyor systems being brought back into operation and newly installed bypass chutes successfully tested.
Managing director Graham Hill said the engineering team had demonstrated strong technical capability and that commissioning and optimisation remained on track for completion during the second quarter.
The placing price implies significant dilution, with 7.35 billion new shares being issued to take the total share count to almost 32.7 billion ordinary shares.