daniel chigunwe
Oliver Kazunga
Business Writer
DIVERSIFIED mining group, Premier African Minerals has secured US$300 000 interim working capital loan facility from Zimbabwean lenders to support the development of its Zulu lithium and tantalum project in Matabeleland South Province.
The United Kingdom-based mining group, which is focused on Zimbabwe, also owns mining claims for rare earth elements and a tungsten project in Matabeleland North Province.
In February this year, Premier announced that it was in the market to raise £2,4 million about US$3,15 million before expenses at an issue price of 0,275 per new ordinary share to fund immediate operations as negotiations with Zimbabwe-based lenders for working capital facilities.
Last month, Premier announced that following strong institutional interest, the mining group agreed to accept a further subscription of 588 235 294 new ordinary shares to raise about £1 million (equivalent to US$1,2 million) before expenses at the same issue price of 0,17 pence per new ordinary share primarily for the Zulu Lithium and Tantalum project.
The mining group continues to engage with local financiers for working capital facilities.
“And Zulu has now secured an interim working capital facility of US$300 000 in Zimbabwe. An extended and larger term facility from potential lenders will only be potentially available once Zulu can demonstrate a steady state of production,” said Premier.
So far, the Zulu lithium and tantalum project’s floatation circuit is running in continuous state producing saleable spodumene concentrate.
In a statement last week, Premier chief executive officer Mr George Roach said through the support Premier has received from ENPROTEC, the supplier of the float plant components and innovation and dedication from the team at Zulu, they were now able to run the floatation circuit continuously and produce saleable spodumene concentrate.
Spodumene is a battery-grade product which is key for the future of electric cars.
“All efforts have been focussed on the Zulu floatation circuit which is now running in continuous state and is producing saleable spodumene concentrate.
“The process to complete rectification and optimisation of the floatation circuit remains ongoing and Premier expects continuous and significant improvement in both floatation grade and tonnage to follow,” he said.
Operations at Zulu were suspended in November last year to allow civil construction to commence in preparation for the installation of a 55 tonnes per hour ball mill and other associated structures.
“The overall plant is currently running at a feed rate to spodumene floatation that is approximately 50 percent of original floatation design capacity and will need a further conditioning tank and minor pump upgrades to operate at the full design capacity,” he said, adding that this is over and above the recently completed flow changes.
“There is much to be encouraged by, notably, the use of an activator in the spodumene floatation plant that has seen recoveries in internal laboratory work approaching 90 percent and the indications that the ore body in situ grade is higher than was estimated in our resource model,” said Roach.
The required pumps are already at site and the additional civils for the conditioning tank should complete this month.
Target full projected capacity remains at 4 000 tonne per month.
The mining group has indicated that the grade is consistently improving with continuous running and latest internal chemical analysis of spodumene concentrate produced by the floatation circuit indicates grades have improved to between 4,5 percent and 6,3 percent lithium oxide.
Bongani Ndlovu