Shares in Aim-listed miner spike as it joins “white gold” rush
Aim-listed Premier African Resources jumped today, after the miner said drilling had commenced at its Zulu lithium project in Zimbabwe.
The programme is aimed at producing a maiden resource, as well as testing extensions to the current 3.5km strike length.
The company's shares soared as much as 44.74 per cent at the open to 0.55p each, giving it a market capitalisation of around £10m.
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The metal has been dubbed white gold by those who are particularly bullish about its growth prospects. A Goldman Sachs report said its use in the batteries for electric cars means lithium demand could triple by 2025.
"We believe that Zulu has the potential to be a company-making asset. Premier will also progress its review of strategic options for the development of Zulu and the options for unlocking value for the company and its shareholders, including possible strategic partnerships and/or the possibility of a separate listing for Zulu lithium," George Roach, Premier's chief executive officer, said.
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Premier has also contracted David Lenigas, the colourful Australian entrepreneur behind last year's 'Gatwick Gusher' oil claim, to conduct an independent review into the project's development and look at how it can be monetised.
"I am also pleased that Zulu has agreed a consultancy agreement with Mr David Lenigas to access his accumulated knowledge and experience in the junior resources lithium sector, in which he was an early investor, and in particular to assist in identifying potential partners for Zulu Lithium," Roach added.