Premier African Minerals Ltd (LON:PREM) is raising £750,000 before expenses at 0.18p per share.
The money raised will be allocated to the restructuring and ongoing holding costs of the RHA tungsten mine and plans to bring it back into production.
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Premier's development proposal has been favourably received by the relevant ministries in Zimbabwe, and the company will now begin mobilising the driller with the aim to commence a drilling programme of up to 2,750 meters as soon as possible.
The objective will be to expand the resource base.
In addition, the company and its technical consultants are finalising an assessment of the wolframite resources contained in the tailings facility of RHA. Premier expects to publish an updated technical report shortly.
This placement will see Premier fully funded in regard to working capital until December 2018, without any dependency on revenue generated from a possible early return to production, targeted at 6,000 tonnes per month at RHA.
"This placement gives Premier a head start at RHA and provides the working capital necessary for the group as a whole,” said chief executive George Roach.
“Being able to get the additional drilling started immediately at RHA is likely to add further value to the mine and will guide efficient and effective back-to-production strategies. With the Zulu lithium and tantalum project nearing the completion of the due diligence period, I look forward to updating the market on the proposed investment by Cadence.”