--ADDS BROKER COMMENT--
Premier African Minerals (LON:PREM) has received a £283,500 cash boost from a share purchase.
The cash, from a single subscriber, will be used to fund the ongoing development and optimisation of the company’s 49% owned RHA Tungsten Project in Zimbabwe.
Some 21mln new shares are being issued to the subscriber at a price of 1.35p each.
“The completion of the optimisation process is essential for PREM to ensure it reduces its opex and increases its production levels, improving its margins in the low ammoniumparatungstate price (APT) environment,” said Dr Ryan Long, analyst at Northland Capital.
Last week the company announced it had achieved steady state production at its RHA. George Roach, chief executive, said throughput was 25% higher than initial design expectations, with 20 tonnes per hour being processed.
Work is underway to improve the efficiency of the recovery circuits he added, while the group intends to fast track the extraction of 100,000 tonnes of ore identified underground in the mine’s historic workings.