Premier African Minerals Ltd (AIM: PREM, OTC: PRMMF) announced it is exploring various strategies to advance its Zulu lithium project, which include the possibility of a full or partial sale.
The company is also considering the installation of an additional spodumene flotation plant, which would be self-financed while maintaining ownership.
Premier African has engaged in discussions with a Chinese company experienced in constructing flotation plants globally. One such plant, currently operational in Zimbabwe, has processed ore similar to that found at the Zulu site.
An additional flotation plant is available, and Premier would need to cover the purchase, civils, and integration costs, estimated at US$400,000, with a timeline from order to operation of three months.
Zulu currently carries significant debt, and although much of it could be restructured over time, restarting operations will necessitate additional funding.
The board believes that resuming production should be a serious consideration if the ongoing strategic reviews and negotiations for Zulu do not succeed.
Immediate payments to significant creditors are also required, the company noted.
For the six months ending in June 2024, Premier reported operating losses of US$12.027 million, with a cash balance of US$0.243 million at the period’s end.
Following these announcements, shares in Premier plummeted by 38% to 0.03p.
