Premier African Minerals CEO George Roach
Photo by: Creamer Media
UK-based mining and exploration company Premier African Minerals has confirmed its principal shareholder Canmax Technologies remains committed to working with the company to ensure the commissioning and optimisation of the primary and secondary flotation plants at the Zulu lithium and tantalum project, in Zimbabwe.
The flotation plants are targeting specific grades and recoveries of material at the mine, with additional float cells to be installed supporting this aim.
Premier African Minerals’ announcement follows a placing and retail offer earlier this month, which aimed to raise £1.2-million and £2.3-million, respectively, to start with the final commissioning and optimisation of the primary flotation plant, as well as the purchase of the secondary plant.
Premier African Minerals and China-based technology company Canmax signed an offtake and prepayment agreement for material from the Zulu project in August 2023 and updated its terms in December last year.
The company and Canmax agreed that, in respect of any prepayment amount plus interest which remains outstanding on April 1, 2025, and in the event that Premier African Minerals has not delivered the required product or provided cash settlement to settle the prepayment amount plus interest, then Canmax will be entitled to receive, as settlement of the outstanding prepayment amount plus interest, a direct interest in Zulu based on a project valuation of $100-million – which more accurately reflects the capital investment in Zulu to date.
Alternatively, Canmax can elect to accept settlement in new Premier African Minerals ordinary shares to be issued.
CEO George Roach remains confident that the company will complete the final commissioning of the spodumene float circuit at Zulu, while the objectives of Premier African Minerals and Canmax remain aligned with the sole intention of meeting delivery of product and liquidation of a prepayment – without which Zulu could not have been built. 