Premier African Minerals (LON: PREM) announced on Tuesday a placing to raise £1 million, sending its share price lower.
The company said it is raising the money for the ongoing Definitive Feasibility Study (DFS) at its Zulu Lithium project in Zimbabwe.
The shares are priced at 0.2p per share.
George Roach, CEO of PREM, commented: “Now that we are properly established on site with an expanding base camp, the first two rigs operating, plans for a third rig and the general work on the DFS underway, it is also time to direct more effort and resource into the rest of the Exclusive Prospecting Order (“EPO”) of some 205 square kilometres.
“Our exploration teams are appointed, airborne geophysics and other remote sensing has been commissioned and we have high expectations for both additional Lithium, Caesium and Tantalum pegmatite discovery and other potential in respect of the Fort Rixon greenstone belt that intrudes into parts of the EPO area.
“The EPO area includes known gold mineralisation and historic reports of producing gold mines. Premier's portfolio of exploration assets and our interest in the producing manganese operations at Otjozondu in Namibia, are representative of an “in demand” basket of industrial minerals and with improving economics and elevated demand, Premier is well positioned to ride this wave of interest in our Lithium, Tungsten, Manganese, Rare Earths, gold and fluorspar deposits and exploration projects.”
PREM's share price is currently down 8.99% at 0.198p, adding to Monday's 0.91% loss.
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