Aim-listed miner Premier African Minerals has entered into a conditional heads of terms (HoT) with UK-based mining investment firm Cadence Minerals, which will secure a direct investment in the Zulu lithium and tantalum project, in Zimbabwe.
Cadence’s investment of up to $5.1-million secures it 30% of the shareholding in the Zulu project and will be used to fund the definitive feasibility study on the project.
A scoping study on the project, completed in November, reported targeted production of 84 000 t/y of spodumene concentrate and 32 500 t/y of petalite with gross revenues estimated at $1-billion.
The study states a mineral resource estimate of 20-million tonnes at 1.06% lithium oxide, containing 526 000 t lithium carbonate equivalent.
“This conditional HoT with Cadence underlines the value and potential of the Zulu project, with a post-investment value of $17-million, reaffirming Premier’s belief that the project is potentially one of the leading hard-rock lithium exploration projects on the London market,” said Premier CEO George Roach.
The HoT will eventually be replaced with a binding investment agreement.