Premier African Minerals Ltd (AIM:PREM, OTC:PRMMF) shares oscillated between a 4% rise and a 14% loss after the company raised £800,000 to support ongoing work at its Zulu lithium and tantalum project in Zimbabwe.
The AIM-listed miner said it had completed a subscription for 4 billion new shares at 0.02p each, with the proceeds earmarked for operational activities at Zulu and general working capital.
The fundraising follows an operational update on Wednesday in which Premier announced the first production of spodumene concentrate from the project's newly commissioned flotation plant, a key milestone in the development of the lithium operation.
Management said the fresh funds would allow the company to continue optimisation work on the plant, refine operating parameters and support the day-to-day requirements needed to move Zulu towards sustained commercial production.
The funding also provides breathing room to manage operating expenses and essential creditors at the project while ramp-up activities continue.
Managing director Graham Hill said the flotation circuit was producing concentrate as expected and that operational stability had improved, although optimisation work remains ongoing.
Zulu is Premier's flagship asset and has been closely watched by investors after a series of delays and technical challenges. The company is now focused on improving concentrate quality and recovery rates as it seeks to establish consistent production from what it describes as a significant lithium resource.
The new shares are expected to begin trading on AIM on 17 June.
