Premier African Minerals Ltd (AIM: PREM) has raised £1 million through a placing at 0.0136p per share as it pushes to complete commissioning of its processing plant at the Zulu Lithium project in Zimbabwe.
The discounted raise triggered a 14% share price fall to 0.014p in early trading, extending a steep decline that has seen the stock lose around 96% over the past year, leaving the company with a market value of roughly £3.4 million.
Funding and dilution
The placing will result in the issue of around 7.35 billion new shares, taking the total share count to nearly 32.7 billion—highlighting the significant dilution required to secure funding.
Proceeds will be used to:
- Complete the Xinhai flotation plant
- Cover operating costs at Zulu
- Manage creditors and provide working capital
Project progress
Construction of the flotation plant, designed to process spodumene (the lithium-bearing ore), is advancing, with key infrastructure now in place:
- Electrical systems installed and awaiting final testing
- Pump connections nearing completion
- Air manifold installation well progressed
- Commissioning underway in crushing and milling circuits
Graham Hill, managing director of Premier African Minerals Ltd, said he is encouraged by the continued progress at the Zulu Lithium project, highlighting the engineering team’s technical capability and execution.
He noted that completion of the Xinhai flotation plant, alongside upgrades to existing operations, is expected to enable consistent production of high-quality spodumene concentrate.
Hill added that commissioning and optimisation remain on track for completion in the second quarter, and said the company will share visual updates from site via its social media channels.
Market view
Despite operational progress, the sharp discount and heavy dilution underline ongoing funding pressures, with investors continuing to weigh execution risk against the potential upside from bringing Zulu into production.
