IN BRIEF: Premier African Minerals warns of debt obligations
Premier African Minerals Ltd - developer of RHA tungsten and Zulu lithium projects in Zimbabwe - While shareholders approve the disapplication of shares to allow it to proceed with phase 5 pre-production readiness, budgeted costs did not include operating costs under normal production after completion of phase 5. Therefore, conducts interim fundraise of GBP500,000 before expenses to support essential consumables at Zulu's camp, provide general working capital, and begin preparations for the Xinhai Flotation Plant. However, additional funding is still required for phase 5 and to settle debts. Also, creditor JR Goddard Contracting demands payment of USD2.3 million before enforcing a previously stayed judgement of USD2.5 million. At the time of the judgement, the total due amounted to just under USD4.0 million. Premier has since paid USD2.1 million in settlement of the judgement amount. Premier says funds are limited, and it must secure additional financing to meet its payment commitments and obligations. Notes there is no guarantee that such funding will be secured which could have a material adverse effect on both Zulu Lithium and the Premier as a whole which "could cast significant doubt" on its ability to continue as a going concern. Discussions with JR Goddard Contracting are ongoing and it is hopes to reach a commercial resolution. Read More