9th Jul 2015 09:04
LONDON (Alliance News) - Premier African Minerals Ltd Thursday said it has issued shares to raise GBP450,000 to allow the company to begin early development at the Zulu lithium and tantalum project in Zimbabwe.
The miner said it issued 22.5 million new shares at a subscription price of 2.0 pence per share together with the issue of 1.35 million warrants with an exercise price of 3.0 pence per share within a three-year period.
Premier African Mineral shares were down 5.4% to 2.27 pence per share on Thursday morning.
"Following an unsolicited approach, the company is pleased to have completed this direct placement intended primarily to develop the Zulu lithium and tantalum project," said Chief Executive George Roach.
The investor in question was not named by Premier African Minerals.
"The investor support is gratifying and an endorsement of the board's strategy and will support rapid development of this project," he added.
The Zulu project is currently an advanced exploration project which has undertaken historical exploration that confirmed the presence of lithium and tantalum. One historic target estimated that 1.4 million tonnes of pegmatite at a possible grade of 1.4 per cent lithium superoxide may be present.
Pegmatites usually consist of quartz, feldspar and mica, having a similar basic composition as granite. Pegmatites are sometimes sources of valuable minerals such as spodumene, which is an ore of lithium, and beryl, an ore of beryllium, that are rarely found in economic amounts in other types of rocks.
By Joshua Warner; [email protected]; @JoshAlliance
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