Premier African Minerals Ltd (AIM:PREM, OTC:PRMMF) shares moved 11% lower on Wednesday, down to 0.015p, after the mining junior announced it is raising £550,000 of new equity to maintain operations at its Zulu lithium and tantalum project while negotiations continue with Canmax Technologies over an extension to the Long Stop Date to a previously agreed prepayment and offtake transaction.
The AIM-listed miner issued 4 billion new shares at 0.01375p each through a direct subscription, with the newly issued shares representing roughly 8% of the enlarged issued capital.
Premier said the proceeds would principally fund operating expenditure at Zulu, the continuation of mining and stockpiling, working capital and payments to essential creditors.
Managing director Graham Hill said the funding would support preparations for the next production and optimisation campaign once a revised operating timetable had been confirmed.
"The company will provide shareholders with a further update once discussions with Canmax have concluded or upon any material development," he added.
