Shares in Premier African Minerals Ltd (AIM:PREM, OTC:PRMMF), the AIM-listed lithium developer, fell 17% to 0.02p after the company raised approximately £1 million through the issue of more than 5.4 billion new shares at 0.0185p each.
The fundraise is heavily dilutive, lifting the total share count to over 38.1 billion, but the proceeds are earmarked for a critical phase in the company’s development as its Zulu Lithium project in Zimbabwe approaches production
Premier said the majority of cold commissioning activities at its new flotation plant have been completed successfully, with water now run through the circuit. The company is preparing to move into hot commissioning, which involves introducing ore into the plant for the first time, representing the final major milestone before production begins. Managing director Graham Hill said progress to date continues to support the previously guided commissioning timeline of the second quarter of 2026.
Conveyor systems have been brought back into operation and testing of newly installed bypass chutes has been completed successfully, with the crushing circuit recommissioned on ore. The funds raised will be used principally to support the ongoing commissioning process, cover operating expenses at Zulu Lithium and manage essential creditors. For existing shareholders, the near-term dilution is the price of keeping the project funded through what the company hopes will be the final stretch before the plant begins producing spodumene concentrate, the raw material used in lithium-ion batteries