Shares of Premier African Minerals Ltd (LON: PREM) surged 75% on speculation about its exclusive prospecting license applications made under its Zulu Lithium Private Limited operating in Zimbabwe.
Investors seem to expect that the company shall be awarded the exclusive prospecting license for the sizeable Zulu Lithium and Tantalum Project in Zimbabwe based on the contents of the Zimbabwean National Assembly Hansard Volume 47 Number 28.
Premier African Minerals (PREM) warned investors that it was yet to receive official communication from the relevant authorities regarding its application and that it would pass on any information obtained from the government.
The mining company extended Friday’s gains as investor interest in the company remained elevated, boosted by the quality of its Zimbabwe exploratory targets and the rising global demand for lithium from the electric battery and car manufacturers.
PREM has a significant first-mover advantage in Zimbabwe and has rights to its most extensive lithium resources. The company also operates other mines in Namibia and Ethiopia, as detailed in my last article.
Technically, PREM shares appear way over-extended as the recent rally has resulted in a parabolic shape, which we now know is typically followed by a significant pullback. I would abstain from establishing any new bullish positions in the stock until we get a retreat.
Investors should look forward to any official communications regarding PREM’s exclusive prospecting licenses that could affect its share price.
However, given the latest rally, it is quite likely that we shall get a “buy the rumour, sell the news” kind of reaction once the official announcement is made.
Premier African Minerals share price.
Premier African Minerals shares surged 75% to trade at 0.21p after rising from Friday’s closing price of 0.12p.
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Simon has over six years of professional trading experience across FX, commodities and equities. He has a strong passion for financial markets and is particularly focused on price action trading