LONDON – Shares in Premier African Minerals Ltd. rose Monday after the company reported exploration results for its Zulu lithium and tantalum project in Zimbabwe, and said that it has signed a nonbinding deal on a possible investment in the project.
The London-listed mining company said that early mineralization results are encouraging and suggest important extensions to the main ore body. Premier highlighted a 37-meter drill interval grading 1.3% lithium oxide from 69 meters depth.
The geological model suggests further extensions to the northwest of the previously announced resource statement, which may potentially increase the tonnage of the mineral resource and the exploration target, Chief Executive George Roach said.
Premier also said that it has signed a nonbinding heads of terms with a leading lithium manufacturer for a direct investment into the Zulu project.
Shares at 1538 GMT were up 23% at 0.29 pence.
Source: Market Watch