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UK firm seeks US$16m for Zimbabwe lithium mine

by Staff reporter
06 Apr 2022 at 05:25hrs | Views
PREMIER African Minerals Limited, which owns a lithium and tantalum operation in Matabeleland South Province, has completed an agreement with investors to raise £12 million (US$15,7m) the firm needs to finance a Definitive Feasibility Study (DFS) for the project.

The London Stock Exchange listed resource group is developing the Zulu Lithium and Tantalum project in the Insiza District of Matabeleland South.

Lithium has become a strategically important mineral given its growing usage in today's advanced technologies that are powered by lithium-ion batteries, including electric vehicles.

In a statement, Premier announced the completion of the subscription agreement by Suzhou TA&A, a China-based company principally engaged in the research, development, production and sale of anti-static ultra-clean products

"The company is pleased to confirm the completion of the subscription agreement by Suzhou TA&A Ultra Clean Technology Company Ltd, (Suzhou TA&A) to raise £12 million before expenses at an issue price of 0,4 pence per new ordinary share for the ongoing Definitive Feasibility Study (DFS) at Zulu," said the resource group.

Recently, Premier received a £1,2 million non-refundable deposit by Suzhou as part of their conditional agreement.

The group's chief executive officer George Roach said: "I reiterate my welcome to our new shareholders and to Dr Lou Wei, and express my appreciation for the confidence in Premier and Zulu.

"Premier has already taken steps to expedite issues associated with resource definition needed to complete mine optimisation and test work and we will continue to accelerate all aspects of the DFS underway."

The subscription fully funds the completion of DFS that is underway at Zulu.

Moreso, the subscription affords Suzhou additional rights such as the right to negotiate their future involvement and/or investment in support of the project.

Among other expectations, Suzhou is also expected to be actively involved in the development of the DFS for the Zulu project.

Premier is an emerging tungsten producer from the RHA Tungsten Mine, which is also advancing the sizable Zulu Lithium and Tantalum Project in Zimbabwe.

In addition, the Company has an interest in MN Holdings Limited, the owner and operator of the Otjozondu Manganese Mining Project in Namibia.

The company holds a significant stake in Circum Minerals Limited, the owners of the Danakil Potash Project in Ethiopia, which has the potential to be a world-class asset.

Premier has a long history of project discovery, acquisition and development across Africa.

Under the US$12 billion mining roadmap by 2023, lithium is one of the minerals expected to the envisaged mining economy contributing US$500 million.

The figure is expected to rapidly increase beyond 2023 as more lithium mines come on board and existing mines ramp up production.

Zimbabwe is among major lithium producers that may draw significant benefits from the firming global global prices and high demand for the precious mineral due to expected imminent supply deficit.

The country is the world's fifth largest producer of lithium with only Bikita Minerals and the Arcadia Lithium project in Goromonzi, which started producing recently.

Source - The Herald
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