Name of the Project
Zulu lithium/tantalum project pilot plant.

Location
Fort Rixon, Zimbabwe.

Project Owner/s
UK-based mining and exploration company Premier African Minerals.

Project Description
The Zulu project comprises 14 mineral claims covering a surface area of 3.5 km².

The proposed pilot plant has a nameplate throughput of up to 190 t/h; however, it is planned to run at a more conservative 140 t/h at inception.

The pilot plant will use state-of-the-art, sensor-based ore-sorting technologies that will facilitate the separation of run-of-mine material into components and, in so doing, will likely increase available capacity in the flotation recovery circuits, where lithium minerals are recovered.

Ultimate production and recoveries are a factor of many variables, and the pilot plant is likely to assist in dealing with these variables, owing to the inherent flexibility of using multiple ore sorters.

Stockpiles of tantalum-, petalite- and mica-/lepidolite-rich material will facilitate further testwork and flowsheet development to ensure that this material is truly inventory for later profitable recovery.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
Not stated.

Capital Expenditure
Not stated.

Planned Start/End Date
Not stated.

Latest Developments
Premier African Minerals has reported a retail offer through a bookbuild of new ordinary shares of no par value each in the capital of the company at an issue price of 0.0275 p each to raise gross proceeds – before fees and expenses – of up to £2.3-million.

The company has also conducted a placing of new ordinary shares at the issue price to raise gross proceeds of £1.2-million. 

The retail offer is not part of the placing.

The issue price represents a discount of about 30% to the closing midmarket price on January 15.

The retail offer is conditional on the new ordinary shares to be issued pursuant to the retail offer being admitted to trading on the LSE’s Aim market.

Completion of the placing and retail offers is interconditional. It is based on, besides others, the gross proceeds of the fundraising, taken together with the value of liabilities that creditors agree to settle by accepting new shares, on the same terms as to price as the placing, being not materially less than £3.5-million. 

Accordingly, should the gross proceeds of the fundraising, together with the value of settlement shares issued at the issue price, be materially less than £3.5-million, the placing and retail offer will not proceed.

The company has said that the net proceeds of the fundraising are sufficient to start the final commissioning and optimisation of the primary flotation plant and to buy a secondary flotation plant. The board believes that this will underpin the full restart of operations at the Zulu lithium and tantalum project, and address those trade creditors that require immediate full or partial settlement to support the initial three-to-five-day test run.

Proceeds will also be allocated towards part payment to the Zimbabwe government in respect of deferred value-added tax and other statutory requirements of $250 000, part payment in respect of arrears of salaries and wages to employees of $400 000, and part payment to specific suppliers of plant spares and maintenance of $180 000.

Any remaining balance will be used in part payments to contractors and other creditors to allow for ongoing commercial operations.

It is expected that agreement will be reached with certain of these parties once the terms of the placing are notified to them

Key Contracts, Suppliers and Consultants
JR Goddard Contracting (mining contractor); and Stark International Projects (design, procurement, installation and commissioning contractor).

Contact Details for Project Information
Premier African Minerals, tel +27 100 201281 or email info@premierafricanminerals.com.