Premier African Minerals Limited Zulu Lithium Update (6505U)
March 29 2023 - 8:00AM
UK Regulatory
TIDMPREM
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
identi ed 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 re ect
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 a ccepted 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
(KLi 2 Al(Si 4 O 10 )(F,OH) 2 ).
----------------------------------------------------
"ROM" Run of Mine
----------------------------------------------------
"Spodumene" A white to pink coloured lithium bearing mineral
(LiAlSi 2 O 6 ).
----------------------------------------------------
Ends
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END
UPDEAADNAAKDEFA
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