REG - Premier African Min. - Corporate Update

Premier African MineralsAnnouncement

06/03/2025 07:15

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RNS Number : 5685Z  Premier African Minerals Limited  06 March 2025

6 March 2025

Premier African Minerals Limited

 

 Corporate Update

Premier African Minerals Limited ("Premier" or the "Company") provides an
update on the progress of the ongoing refinancing efforts of its 100%-owned
Zulu Lithium and Tantalum Project ("Zulu").

Further to the announcement on 21 January 2025, in which Premier announced
that the proposed fundraising of £3.5 million had not closed, the Company is
providing an update on discussions with relevant financial stakeholders to
secure this funding on the best terms for shareholders. This fund raising had
been required to support  the final commissioning and optimisation of the
Primary Spodumene Flotation Plant and purchase of the Secondary Spodumene
Flotation Plant, which Premier continues to believe underpins the full
recommencement of operations at Zulu in due course, and to address those trade
creditors that required immediate full or partial settlement in order to
support the initial 3-to-5-day test run.

Premier is actively seeking a fully funded solution for Zulu and actively
engaging with all existing stakeholders, in particular Zulu's prepayment and
offtake partner with whom detailed discussions continue. Whilst this remains
our preferred solution, Premier is also engaged with other new potential
investors. In the absence of a financing solution, Premier may need to
consider alternative options for Zulu in the interests of its creditors and
shareholders, which may include raising financing at the subsidiary level, a
sale of Zulu whilst keeping it in a state of care and maintenance, the
liquidation of the assets of Zulu, or other options available under Zimbabwean
laws including a corporate rescue of Zulu.

George Roach, CEO commented, "Based on the extensive test work and design
reviews undertaken in Quarter 3 of 2024, the purchase of a secondary spodumene
float plant of traditional design, and the opinions expressed by the original
float plant OEM and our reagent supplier, we are confident that when
operations resume, we will produce with improved recoveries and concentrate
grade.

In my opinion, to have attended to the issues associated with the comminution
circuit and be able to supply the required tonnage to the float sections, we
have dealt with the major and potentially most costly components of the plant
and to not complete the final commissioning and optimisation of the float
section now would not make any sense.

It should be noted that we are in discussions with interested parties both
regarding our Mutare Li3 claims and RHA Tungsten with a view to a possible
restart of this mine."

Current Trading

 

As reported in the interim results published on 30 September 2024 ("Interim
Results"), at the reporting date of 30 June 2024, the Group's total assets
exceeded the total liabilities by $12.481 million and its current
liabilities exceeded its current assets by $47.815 million. The major
component of the current liability excess comprised the $42.8
million (inclusive of interest) received from Canmax Technologies Co., Ltd.
("Canmax") as an advance receipt which is expected to be settled from proceeds
from the sale of SC6 to Canmax from production at Zulu. The balance of
liabilities principally comprised trade creditors incurred by Zulu.

The Zulu plant has not run since July 2024 and as at 28 February 2025,
unaudited total group liabilities (including amounts due to Canmax under the
Offtake and Prepayment Agreement of $46.353 million including unsettled
interest of $11.7 million) amounted to $64.327 million, of which group trade
creditors including unpaid salaries amounted to approximately $17 million. The
Company continues to require immediate funding to maintain all essential
operational requirements at both Premier and Zulu. Premier's principal trade
creditors have, to date, continued to remain supportive of Zulu pending the
flotation plant remedial work explained above, and further reassurances by the
Company of its plan that Zulu's operations will be recommissioned in good time
to support a full settlement.

Market Abuse Regulations

The information contained within this announcement is deemed by the Company to
constitute inside information as stipulated under the Market Abuse Regulations
(EU) No. 596/2014 as it forms part of UK Domestic Law by virtue of
the European Union (Withdrawal) Act 2018 ("UK MAR").

The person who arranged the release of this announcement on behalf of the
Company was George Roach.

A copy of this announcement is available at the Company's
website, www.premierafricanminerals.com
(http://www.premierafricanminerals.com/) .

Enquiries:

 

 George Roach                        Premier African Minerals Limited    Tel: +27 (0) 100 201 281
 Michael Cornish / Roland Cornish    Beaumont Cornish Limited            Tel: +44 (0) 20 7628 3396

                                     (Nominated Adviser)
 Douglas Crippen                     CMC Markets UK Plc                  Tel: +44 (0) 20 3003 8632
 Toby Gibbs/Harry Davies-Ball        Shore Capital Stockbrokers Limited  Tel: +44 (0) 20 7408 4090
 Andrew Monk / Andrew Raca           VSA Capital Limited                 Tel: +44 (0)20 3005 5000

 

Nominated Adviser Statement

Beaumont Cornish Limited ("Beaumont Cornish"), which is authorised and
regulated in the United Kingdom by the Financial Conduct Authority, is
acting as nominated adviser to the Company in connection with this
announcement and will not regard any other person as its client and will not
be responsible to anyone else for providing the protections afforded to the
clients of Beaumont Cornish or for providing advice in relation to such
proposals. Beaumont Cornish has not authorised the contents of, or any part
of, this document and no liability whatsoever is accepted by Beaumont Cornish
for the accuracy of any information, or opinions contained in this document or
for the omission of any information. Beaumont Cornish as nominated adviser to
the Company owes certain responsibilities to the London Stock Exchange which
are not owed to the Company, the Directors, Shareholders, or any other person.

Notes to Editors:

Premier African Minerals Limited (AIM: PREM) is a multi-commodity mining and
natural resource development company focused on Southern Africa with its RHA
Tungsten and Zulu Lithium projects in Zimbabwe.

 

The Company has a diverse portfolio of projects, which include tungsten, rare
earth elements, lithium and tantalum in Zimbabwe and lithium and gold
in Mozambique, encompassing brownfield projects with near-term production
potential to grass-roots exploration. The Company has accepted a share offer
by Vortex Limited ("Vortex") for the exchange of Premier's entire 4.8%
interest in Circum Minerals Limited ("Circum"), the owners of the Danakil
Potash Project in Ethiopia, for a 13.1% interest in the enlarged share
capital of Vortex. Vortex has an interest of 36.7% in Circum.

 

ENDS

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