Premier African Minerals has concluded the definitive transaction documents of the marketing and prepayment agreement it announced on 24 June, it said on Wednesday.
The AIM-traded firm said it was in receipt of $18.1m of the prepayment that was required to have been paid to date.
It said the payment would be used for the Zulu plant fabricators and site contractors.
Fabrication and site construction was “well underway”, with a projected completion date for commercial production expected in the first quarter of 2023.
“I am pleased to confirm the signing of this agreement and the receipt of funds,” said chief executive officer George Roach.
“Fabrication, site design and construction are underway and projected commencement of commercial production is now scheduled for the first quarter of 2023.
“The pre-payment is expected to be fully offset against future shipments inside of 12 months at the prevailing SC6 pricing.”
Roach said the company also recently appointed independent project and construction management teams to assist in ensuring compliance with timelines and budgets.
“At the same time, there has been an improved turn around in assays and we expect to release significant results as they come to hand.
“Further updates on the construction of the pilot plant will be provided in due course.”
At 1447 BST, shares in Premier African Minerals were down 1.03% at 0.29p.
Reporting by Josh White at Sharecast.com.