en.Wedoany.com Reported - Premier African Minerals Ltd. has raised $1.07 million (approximately £800,000) through the issuance of 4 billion new shares, just one day after the company announced the production of its first spodumene concentrate from the Zulu lithium project in Fort Rixon, Zimbabwe.
The London-listed mining company issued shares at a price of 0.02 pence per share, a slight increase from the 0.0185 pence in its previous fundraising round, but still below 1 pence. Following the subscription, Premier's total issued share capital will reach 43.3 billion ordinary shares. Data shows that in just over six months, the company's share count has surged from approximately 9.35 billion shares to 43.3 billion shares, an increase of more than 4.5 times. An investor holding a 1% stake in the company in November 2025 now holds less than 0.22%, with their stake diluted by nearly 78%. The 4 billion new shares issued in this round have not yet been approved for trading, and their inclusion would further dilute existing shareholders' equity.
On June 10, Premier announced that its newly commissioned Xinhai flotation plant had produced its first spodumene concentrate. Managing Director Graham Hill described this as a "significant operational milestone" and stated that the plant is operating as expected. However, the initial concentrate is not commercial production; optimization continues, operating parameters require adjustments, and the company has yet to generate any revenue from sales. The company stated that the newly raised funds will be used to support ongoing optimization, operational expenses, creditor management, and general working capital.
The Zimbabwean government previously suspended the export of spodumene concentrate. Premier stated that it is in "dialogue" with the Ministry of Mines and that the ban is "targeted at specific issues." No formal export exemption has been announced yet, and even if the flotation plant operates normally, there is no guarantee that the concentrate can be shipped and sold on the international market.
Hill stated that the board remains focused on advancing Zulu to achieve sustained production and deliver long-term value. However, for shareholders who have funded the project through nearly 44 billion shares, the question is no longer whether Zulu can produce, but whether any value will remain once production is complete. Source: Mining Zimbabwe
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