Aim-listed Premier African Minerals has announced a placing and subscription to raise £4-milllion before expenses for the ongoing Zulu lithium and tantalum project pilot optimisation, in Zimbabwe, where the company is targeting revenue-generating production by November.

In particular, Premier anticipates using the proceeds to meet the costs associated with the interim mill installation and associated thickener that is expected to collectively increase production to about 50% of design capacity from October; ongoing pit development to clear the weathered zone; and general operational costs to cover the current interim period until the end of November.

“Based on current projections, this funding and the arrangements set out below are expected to see Zulu pass through the current interim remedial situation and allow the company to reach target nameplate production at Zulu.

“I am appreciative of the support from our investors and from our contractors who effectively are making their own statement of confidence going forward with this investment,” says CEO George Roach.

The two biggest costs associated with Zulu’s ongoing development are in respect of the openpit mining contractor JR Goddard Contracting; and the Zulu design, procurement, installation and commissioning contractor Stark International Projects.

Both have now agreed to collectively accept payment of a limited number of future invoices until the end of December in new ordinary shares of the company at the closing middle market price on the day prior to settlement.

Application will be made for the placing shares to be admitted to trading on Aim and admission is expected to take place on or around August 31.