(Alliance News) - Premier African Minerals Ltd shares jumped on Friday, after the minerals and metals project developer announced it has signed terms for a large pilot lithium plant in Zimbabwe.
The British Virgin Islands-based firm will establish the plant at Zulu lithium and tantalum project, which will allow the production of spodumene concentrate, or SC6 - a type of high-purity lithium ore, from the first quarter of next year.
Shares in Premier African were up 6.0% to 0.35 pence each in London on Friday morning.
The developer has signed a market and prepayment agreement for the project, in a binding head of terms with China-based Suzhou TA&A Ultra Clean Technology Co Ltd. Suzhou will provide USD34.6 million to enable the construction and commissioning of the plant, in return for the right to acquire the first three years of production of SC6 until the amount has been repaid.
It targets eventual annual production of around 50,000 tonnes of SC6.
The company emphasises the pilot plant facility will only produce SC6 in the first phase. It will stockpile three by-product streams which will go to inventory, as it awaits additional testing and an additional plant.
"These products are a tantalum concentrate in a magnetic fraction, a petalite-rich mixed ore and a mica/lepidolite concentrate that is likely to contain caesium and rubidium. That this may be immediately saleable remains a possibility," said Chief Executive Officer George Roach.
By Elizabeth Winter; elizabethwinter@alliancenews.com
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Premier African Minerals (PREM)