Online Reporter
Nqobile Bhebhe
Zimpapers Business Hub
ZULU lithium developer, Premier African Minerals Limited, has implored shareholders to approve two critical resolutions at the forthcoming General Meeting, warning that failure to do so can jeopardise the company’s ability to continue operating as a going concern.
The AGM, scheduled for October 30, will deliberate on resolutions deemed vital to ensuring the company’s financial stability and operational continuity.
Premier operates the Zulu lithium plant in Fort Rixon, Matabeleland South Province.
The lithium developer needs fresh funding primarily to fund ongoing operational expenses at its Zulu lithium and tantalum project, which includes optimising the primary flotation plant and funding a potential alternative plant.
The money is also needed for working capital, settling debt and purchasing essential consumables to sustain operations while it concludes negotiations for a larger funding solution.
In a notice to shareholders, managing director, Mr Graham Hill, stressed that the proposed special resolutions are essential for the company to raise capital and meet its financial obligations.
“Premier has limited funds and must secure additional financing arrangements to meet its payment commitments and obligations as they fall due,” said Mr Hill.
He cautioned that rejection of the special resolutions could have severe consequences for the company’s viability.
“If the special resolutions are not approved, a material uncertainty would arise which could cast significant doubt on the group’s ability to continue as a going concern and, consequently, on its ability to realise assets and settle liabilities in the normal course of business,” he said.
The first resolution seeks approval for the disapplication of pre-emption rights under the company’s articles of association for 24 months, allowing the board to issue or grant rights to subscribe for up to five billion ordinary shares.
The second resolution, which is conditional upon the first, proposes an additional one billion shares to be issued within 12 months, specifically to enable conversion of rights in favour of Canmax, as previously notified on December 24, 2024.
Mr Hill said the board “strongly encourages all members to vote on all the proposed resolutions,” noting that both measures were vital to maintaining financial flexibility.
“The board considers the approval of the resolutions being proposed at this GM to be in the best interests of the company and its shareholders as a whole and, accordingly, unanimously recommends that shareholders vote in favour of the resolutions,” he said.
