Zulu Lithium Project Secures US$4.35 Million to Re...

Zulu Lithium Project Secures US$4.35 Million to Restart Operations

Zim Now Writer

The Zulu Lithium and Tantalum Project in Fort Rixon has taken a significant step toward resuming full-scale production, securing US$4.35 million in a recent fundraising initiative.

The funds were raised through a US$2.87 million retail offer and a u

US$1.5 million share placing, with shares issued at 0.0275 pence each—a 30% discount from 15 January 2025 market prices.

The success of the fundraising is contingent upon the project's admission to the AIM market, scheduled for January 23, 2025.

The funds will be directed toward a 3-to-5-day test run and commissioning of the Primary and Secondary Flotation Plants, with US$800,000 allocated for this critical step. To ensure compliance with regulatory obligations, US$250,000 will go toward settling deferred VAT payments and other government obligations.

Additionally, US$400,000 has been earmarked for overdue employee salaries and wages, addressing labour concerns and boosting workforce morale.

Supplier payments for spares and maintenance will account for US$180,000, with the remaining funds being used for partial payments to contractors and creditors.

In addition to the fundraising efforts, the company is negotiating with creditors to settle outstanding debts. It is proposing that creditors accept shares as partial or full settlement, a strategy aimed at preserving cash flow. Shareholders will be updated on the outcomes as discussions progress.

The Zulu Lithium and Tantalum Project is one of Zimbabwe’s most prominent mining ventures, with vast potential to contribute to the global supply of lithium—a critical mineral for electric vehicle batteries and renewable energy storage.