Premier African Minerals Limited Update on Corporate Strategy for Zulu Lithium (7345S)
March 18 2021 - 6:30AM
UK Regulatory
TIDMPREM
RNS Number : 7345S
Premier African Minerals Limited
18 March 2021
Premier African Minerals Limited / Ticker: PREM / Index: AIM /
Sector: Mining
18 March 2021
Premier African Minerals Limited
("Premier" or the "Company")
Update on Corporate Strategy for Zulu Lithium
Premier African Minerals Ltd ("Premier" or the "Company"), is
pleased to provide this update on progress and strategy to be
applied in the future development of both Premier and Zulu Lithium
and Tantalum Limited ("Zulu").
George Roach, Chief Executive of Premier commented:
"With both the emerging short supply and simultaneous escalating
price and demand for spodumene and the grant of the Exclusive
Prospecting Order ("EPO") as announced on 17 March 2021, Premier's
prospects are today fundamentally different. And whereas the Board
was of the view historically that on grant of the EPO, development
of Zulu would almost certainly follow a path of ultimate joint
venture development with a surrender of a significant direct equity
stake in Zulu, Premier's present market value suggests that
retention of 100% of Zulu is now potentially a better option. The
strategy related to the divestment of our Zimbabwe assets may no
longer be appropriate. Accordingly, Premier will focus on the
development of Zulu and realisation of the potential true value of
this asset and proper exploration of the upside potential in the
EPO.
Complementing this, Premier and MN Holdings Limited ("MNH")
continue to develop our mutual interests in the operating Otjozondu
Manganese Mine in Namibia. It is also worth noting that anything
that the Board of Premier considers to be of value and in the best
interest of the Company will attract an overall lower cost in terms
of any existing dilution for Premier shareholders as underpinned by
the potential value in Zulu.
The Definitive Feasibility Study ("DFS") timeline is estimated
at 14 months and this is unlikely to change. Subsequent to
completion of our Zulu resource estimate, further drilling
identified additional prospective zones as announced on 2 February
2018 and supported the mine plan included in the scoping study
prepared by Bara Consulting of 1,000,000 tonnes run of mine ore per
annum with a projected grade of 1.39% Li in the first year.
Subsequent to the awarding of the EPO for Zulu, Premier has
received multiple approaches both proposing direct funding for the
Zulu DFS as well as investment linked to product take off and
future mine development. Premier is evaluating these and now
expects to be able to update our shareholders on the way forward by
the end of this month.
In closing, it is worth noting that the Zimbabwean Government's
award of the EPO at Zulu and several other EPO applications, is a
clear signal that Zimbabwe is truly open for business and is taking
steps to achieving their long-term mining goals."
This announcement contains inside information for the purposes
of Article 7 of EU Regulation No. 596/2014 on market abuse. The
person who arranged for the release of this announcement on behalf
of the Company was George Roach, Director.
A copy of this announcement can be found on the Company's
website www.premierafricanminerals.com
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 holds 5,010,333 shares in Circum Minerals Limited, the
owners of the Danakil Potash Project in Ethiopia, which has the
potential to be a world class asset.
In addition, the Company holds a 19% interest in MN Holdings
Limited, the operator of the Otjozondu Manganese Mining Project in
Namibia.
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)
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Jerry Keen/Edward Mansfield Shore Capital Stockbrokers Limited Tel: +44 (0) 20 7408 4090
M atthew Bonner E AS Advisors LLC T el: +1 646 495 2225
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