Premier African Minerals Limited / Ticker: PREM
/ Index: AIM / Sector: Mining
For immediate
release
13 March
2024
Premier African Minerals
Limited
Zulu Lithium Plant and General
Update
Premier African Minerals Limited
("Premier" or the
"Company") is pleased to
provide an update on operations at Zulu Lithium and Tantalum
("Zulu").
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Highlights
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Zulu engineering team has taken over
as operator with responsibility to deal with outstanding plant
issues.
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Accordingly, Stark International
Projects Limited has withdrawn all personnel from Zulu.
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Premier has undertakings from all
relevant OEM to provide such support as requested and may be
required in the continuing optimisation, remedy and improvement of
the plant.
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Premier has engaged a major
independent EPCM contractor to undertake a complete survey and
review of the plant as installed.
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Issues with pH measurement and
automatic reagent dosing are resolved to the extent necessary to
ensure plant operations.
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Final integration of the thickener
is underway and is expected complete during the week commencing 18
March 2024.
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Contract miner is back at site after
a delay caused by several factors, not the least availability of
explosives.
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The plant is operational, and
Premier will focus on achieving the design throughput and standards
with the assistance as needed of the various OEMs.
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A complete cleanout of the float
section of the plant is underway to ensure that material
inadequately treated before remedy of the pH related problems is
removed from the plant.
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Recently produced concentrates are
adversely affected by the pH issues, however spodumene concentrate
floated in the main plant on 12 March is now at SC6
grade.
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Mining is now closely supervised,
and a team has been appointed to inspect ROM pad ore for any waste
contamination.
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Dorfner Anzaplan GmbH has been
reengaged to reevaluate the sensor-based sorters currently
installed and to advise on any recommended changes.
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Certain additional upgrades are
expected to the Ultraviolet sorters and direct communication and
arrangements will be made with the OEM.
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Stark International Projects Limited
("Stark")
As announced on 24 June 2022,
Premier accepted a proposal and a quotation to design, supply and
deliver to Zulu and to assemble and commission a plant at an
additional charge, that was to meet certain specific design and
through-put specifications ("Zulu
Plant Performance"). The plant was expected to produce
Spodumene concentrate at 6% Li20 from March 2023. The plant had not
met the specific design and through-put specifications a year after
the original target completion date. Material reasons have been set
out in previous announcements. Accordingly, Premier has requested
that Stark demobilise and leave Zulu immediately and Stark has
agreed and done so.
Stark and Premier will continue to
engage on the final terms and conditions of any separation and on
how best to move forward, however at this time there is a dispute
between Stark and Premier pertaining to the Zulu Plant Performance.
Premier fully reserves its rights in this regard.
At this time the Zulu plant is being
run by the Zulu management team. Premier is now the operator of
Zulu.
George Roach, CEO
commented, "As is apparent from the
points above, this has been a dramatic week, but a necessary one.
On the one hand, Premier is obviously disappointed with the further
delays, but Premier is pleased with the ability displayed by our
engineering team to take on plant operations and demonstrate the
skills we have in our team.
Premier is encouraged by the
response we have had from OEM suppliers and their commitment to
ensure their equipment is optimised to the maximum. As Premier
stated on 29 February, we are getting there. Not as quickly as
Premier had hoped and with more unnecessary issues than we had
anticipated.
Premier does believe this is a major
turning point and we look forward providing further updates from
Zulu."
Market Abuse Regulations
The information contained within this
announcement is deemed by the Company to constitute inside
information as stipulated under the Market Abuse Regulations (EU)
No. 596/2014 as it forms part of UK Domestic Law by virtue of the
European Union (Withdrawal) Act 2018 ("UK MAR").
The person who arranged the release
of this announcement on behalf of the Company was George
Roach.
A copy of this announcement is
available at the Company's website, www.premierafricanminerals.com
Enquiries:
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George Roach
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Premier African Minerals Limited
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Tel: +27 (0) 100 201 281
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Michael Cornish / Roland Cornish
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Beaumont Cornish Limited
(Nominated Adviser)
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Tel: +44 (0) 20 7628 3396
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Douglas Crippen
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CMC
Markets UK Plc
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Tel: +44 (0) 20 3003 8632
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Toby Gibbs/Rachel Goldstein
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Shore Capital Stockbrokers Limited
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Tel: +44 (0) 20 7408 4090
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Nominated Adviser Statement Beaumont Cornish
Limited ("Beaumont
Cornish"), which is authorised and regulated in the United
Kingdom by the Financial Conduct Authority, is acting as nominated
adviser to the Company in connection with this announcement and
will not regard any other person as its client and will not be
responsible to anyone else for providing the protections afforded
to the clients of Beaumont Cornish or for providing advice in
relation to such proposals. Beaumont Cornish has not authorised the
contents of, or any part of, this document and no liability
whatsoever is accepted by Beaumont Cornish for the accuracy of any
information, or opinions contained in this document or for the
omission of any information. Beaumont Cornish as nominated adviser
to the Company owes certain responsibilities to the London Stock
Exchange which are not owed to the Company, the Directors,
Shareholders, or any other person.
Forward
Looking Statements
Certain statements in this announcement are or
may be deemed to be forward looking statements. Forward looking
statements are identified 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 reflect 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.
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Glossary
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"EPCM"
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Engineering, Procurement and Construction
Management.
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"Li2O"
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Lithium Oxide (Lithia) - an inorganic lithium
compound used to assess lithium minerals.
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"OEM"
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Original Equipment Suppliers.
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"pH"
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Indicates the concentration of hydrogen ions in
a liquid. While a low pH indicates a higher concentration of
hydrogen, a high pH indicates a lower hydrogen
concentration.
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"ROM"
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Run-of-mine.
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"SC6"
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spodumene concentrate.
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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 accepted 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.