Premier African Minerals Ltd (LON:PREM) raised £1mln in a share placing as it continues to progress a definitive feasibility study (DFS) for the Zulu lithium project in Zimbabwe.
The company is issuing 625mln new shares priced at 0.16p each, which according to the company chief executive George Roach marks only a nominal dilution and “a small price to pay” to retain a 100% interest in Zulu.
"The detailed planning, construction of the exploration camp, road repairs and location of equipment to site, and other work associated with the resource expansion and definition drilling for the DFS at Zulu is progressing and to date has been funded from Premier's retained cash resources,” Roach said in a statement.
Roach noted that the funding means the company will avoid disruption to its progress at Zulu and it provides more time to enhance value through the DFS process.
He added that a drilling update for Zulu is due later this month, along with updates on the RHA Tungsten venture, and the company’s other assets.