REG - Premier African Min - Interim update Zulu Lithium Project

Premier African MineralsAnnouncement

13/06/2022 07:01

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20220613:nRSM3915Oa&default-theme=true

RNS Number : 3915O  Premier African Minerals Limited  13 June 2022

13 June 2022

Premier African Minerals Limited

 

Premier African Minerals Limited ("Premier" or the "Company"), is pleased to
provide this interim update regarding progress and potential alternative
proposal for early production at Premier's Zulu Lithium and Tantalum Project
("Zulu").

 

George Roach, CEO commented," Since acceptance of the subscription by Suzhou
TA&A Ultra Clean Technology Co., Ltd ("Suzhou TA&A") set out in our
RNS in March this year, and pursuant to receipt of results from initial phases
of test work undertaken on ore sorting by Anzaplan in association with Stark,
it is clear that a potential opportunity exists for Zulu to be brought into
early production based on a large-scale pilot plant using ore sorting
technology to concentrate spodumene rich ore from other lithium minerals and
gangue material before milling and floatation to produce a spodumene
concentrate only and stock pile both a tantalum-rich fraction and petalite for
future processing. Based on this plan, it is possible that such a plant could
be in production in Q1 2023, funded under an interest free prepurchase payment
for spodumene concentrate to be supplied. Shareholders should note that no
funding has yet been arranged for this possible pilot plant and amongst many
aspects of this whole concept still under scrutiny, this will still require
completion.

It is worth noting that the current demand for spodumene and the resultant
prices, significantly de-risk this concept and support Premier's recent focus
in terms of both our drilling programme at Zulu that is now exclusively
targeting high grade spodumene zones within the ore body at an indicated
resource level, and on aspects of the DFS in relation to implementation of the
pilot plant. Importantly, operation of the pilot plant will fine tune aspects
of the process that will support the DFS. Further details will be provided in
due course along with details of any finance arrangements, together with
illustrative valuation and revenue projections for the pilot plant.

To date a total of 18,000 meters has been drilled at Zulu, and after a
complete revision of QA/QC procedures and all aspects of sample preparation
and analysis, assay testing and results are now continuing and the Company
will publish highlights and significant assay results in due course when these
are available.

In closing, I remind shareholders that Premier is potentially following an
accelerated programme of early production to exploit the current opportunity.
There are identified risks and abatements inherent in this to a greater extent
than may be the case following a fully developed DFS. However, the potential
immediate availability of prepurchase payment and existing Spodumene price and
demand are important and strong motivators in potentially pursuing this
option".

Forward Looking Statements

Certain statements in this announcement are or may be deemed to be forward
looking statements. Forward looking statements are identified by their use of
terms and phrases such as ''believe'' ''could'' "should" ''envisage''
''estimate'' ''intend'' ''may'' ''plan'' ''will'' or the negative of those
variations or comparable expressions including references to assumptions.
These forward-looking statements are not based on historical facts but rather
on the Directors' current expectations and assumptions regarding the Company's
future growth results of operations performance future capital and other
expenditures (including the amount. Nature and sources of funding thereof)
competitive advantages business prospects and opportunities. Such forward
looking statements reflect the Directors' current beliefs and assumptions and
are based on information currently available to the Directors. A number of
factors could cause actual results to differ materially from the results
discussed in the forward-looking statements including risks associated with
vulnerability to general economic and business conditions competition
environmental and other regulatory changes actions by governmental authorities
the availability of capital markets reliance on key personnel uninsured and
underinsured losses and other factors many of which are beyond the control of
the Company. Although any forward-looking statements contained in this
announcement are based upon what the Directors believe to be reasonable
assumptions. The Company cannot assure investors that actual results will be
consistent with such forward looking statements.

MAR

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.

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

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)
 John More/Toby Gibbs                Shore Capital Stockbrokers Limited  Tel: +44 (0) 20 7408 4090
 Matthew Bonner                      EAS Advisors LLC                    Tel: +1 646 495 2225

 

Glossary of Technical Terms

 "DFS"    Definitive Feasibility Study.
 "QA/QC"  Quality Assurance/Quality Control.

 

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.

 

In addition, the Company holds a 19% interest in MN Holdings Limited, the
operator of the Otjozondu Manganese Mining Project in Namibia.

Ends

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  MSCFLFERRLIAIIF