REG - Premier African Min - Zulu Lithium Update

Premier African MineralsAnnouncement

29/03/2023 14:00

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RNS Number : 6505U  Premier African Minerals Limited  29 March 2023

29 March 2023

Premier African Minerals Limited

 

Zulu Lithium Update

 

Premier African Minerals Limited ("Premier" or the "Company"), is pleased to
report on current status at Premier's Zulu Lithium and Tantalum Project
("Zulu").

 ·         Plant assembly and construction is complete.
 ·         Final instrumentation connections completed on 28 March 2023.
 ·         Plant to point of mill feed has been run.
 ·         Plant to Mica feed tank expected to run this morning.
 ·         Wet section (floatation part of the plant) has water on and is pressurised.
 ·         Ore is on the ROM pad, ready to feed.
 ·         Crusher settling in pre-production runs are underway.
 ·         First live production runs to produce spodumene expected this week provided
           final approvals from Zimbabwean authorities are received on time.

George Roach, CEO commented, "We expect to produce spodumene, a lepidolite
mica rich concentrate and a tantalum rich concentrate late this week provided
that final formal outstanding approvals from certain Zimbabwean authorities
are received.

It should also be noted that an error on the part of the plant designers led
to a late change in reagent dosing and reagent requirements. This and a
combination of late delivery of certain components of the floatation system of
the plant, a severe wet season in Zimbabwe and the continued issues of slow
import clearance of essential plant at Beitbridge, have all combined to cause
Premier's self-imposed internal commissioning target of 14 February 2023 to be
missed. I expect to be in a position to provide guidance on operating
projections in the coming weeks.

 

Premier was adequately funded to that projected date and remains in funds at
this time. It may be necessary to either increase the prepayment amount under
current Marketing and Pre-Payment Agreement or accept a short-term loan
facility secured against spodumene to be produced to meet operating costs at
Zulu in the coming weeks. Should that arise, it will be announced at that
time.

 

Premier has received a number of requests from other mining companies already
well established in Zimbabwe to discuss our intentions in regard to the future
of Zulu for either future offtake and/or direct equity investment into Zulu.
At the same time, Premier is in discussions intended to see a quick increase
in production and a broadening of the product base as the focus of production
at the Zulu plant has only been the production of spodumene. This is likely to
take the form of fully funded extensions and modifications to the existing
plant. In that regard, I remind shareholders that the existing plant will only
process approximately 60% of the ore feed through to the floatation circuits
and the first upgrades will be targeted at increasing floatation capacity to
increase concentrate production.

 

I am personally excited at this prospect of so significant a company-changing
moment in the history of our Company and am somewhat in awe when I consider
that in September 2022 this was virgin bush!

None of this would have been possible without the massive contribution made by
so many of our staff and our contractors and the incredible support of our
shareholders through some really trying years in getting to where we are
today."

 

Marketing and Pre-Payment Agreement ("Agreement")

 

In accordance with the Agreement entered into between Premier and Suzhou
TA&A Ultra Clean Technology CO. LTD. ("Suzhou TA&A") as announced on
24 June 2022, Premier was required to supply product by the 31 March 2023.
Suzhou TA&A will begin charging interest at rate 3.5% per annum on the
prepayment amount of US$34,644,385 from the 1 April 2023. Premier will have
until 30 May 2023 to begin providing Suzhou TA&A with product in
accordance with the Agreement, a failure to do this will provide CanMax with
the right to terminate the Agreement by notice in writing to Premier and
Premier will need to enact repayment of the prepayment amount plus interest in
full within ninety (90) days of such termination notice.

 

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

 

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.

 

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.

 Glossary of Technical Terms:
 "Lepidolite"  A pink to lavender coloured lithium bearing mineral (KLi2Al(Si4O10)(F,OH)2).
 "ROM"         Run of Mine
 "Spodumene"   A white to pink coloured lithium bearing mineral (LiAlSi2O6).

 
Ends

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