The proceeds of the funding will be used by Premier African Minerals towards the acquisition of a further 1% in Circum Minerals and to provide general working capital as set out herein.
“This new funding completed at a significantly higher share price since our last placing, allows us to secure the working capital requirements for Premier African Minerals for the immediate future as well as secure a further interest in Circum Minerals at an improved price based on a cash settlement, explains Premier African Minerals CEO, George Roach.
“Regarding Zulu Lithium and Tantalum, significant lithium bearing mineral intersections identified in the current drilling programme support our view that this deposit has the potential to be a tier-one lithium project and the board of Premier African Minerals has been advised to progress the project further before accepting any of the approaches that have been made to either acquire the project or to joint venture,” adds Roach.
“Part of the finance now raised will allow Premier African Minerals to expedite the exploration effort as well as continue further metallurgical test work and engineering studies which will form part of a Preliminary Economic Assessment (“PEA”) at Zulu. Negotiations will be ongoing and our objective remains to maximise shareholder value,” he continues.
“In terms of our increased interest in Circum Minerals, Premier African Minerals firmly believes in the demand growth for fertiliser products and that Circum Minerals’ wholly-owned Danakil Potash Project, a world class and low-cost potash project is well placed to benefit from this.
“The opportunity to acquire a further 1% in Circum Minerals for a cash consideration of $1.25 per share is an attractive opportunity given the last placement at $2 per share, after which Circum Minerals subsequently optimised its definitive feasibility study which resulted in even more compelling economics as well as received its mining license. Increasing our stake in Circum Minerals underwrites our asset base further,” concludes Roach.
Feature image credit: Circum Minerals