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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.

Tradingview chart of Premier African Markets share price 08-03-2021

Premier African Minerals shares surged 75% to trade at 0.21p after rising from Friday’s closing price of 0.12p.

Should you invest in Premier African Minerals shares? Premier African Minerals shares are traded on the AIM market of the London stock exchange (the alternative investment market) which is the sub market specifically for smaller companies. AIM stocks are attractive to investors as they have tax advantages and smaller companies have the potential to benefit from rapid growth. But are Premier African Minerals shares the best buy? Our stock market analysts regularly review the market and share their picks for high growth companies

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