Premier African Minerals Offtake and Prepayment Agreement
Premier African Minerals Limited, is pleased to provide an update on the Offtake and Prepayment Agreement entered into between Premier and Canmax Technologies Co., Ltd., formerly known as Suzhou TA&A Ultra Clean Technology Co. Ltd, (“Canmax”).
In accordance with the terms of the Agreement entered into on 3 August 2022, Premier was required to supply product by 30 May 2023, Canmax now have the right to terminate the Agreement by notice in writing to Premier and Premier will need to enact repayment of the prepayment amount plus interest in full within ninety (90) days of such termination notice.
Premier has been accruing interest at 3.5% per annum (subject to adjustment from time to time in accordance with loan prime rate as published by the People’s Bank of China) to Canmax in accordance with the Agreement.
Canmax and Premier are in advanced discussions pertaining to an addendum to the Agreement to allow for the following:
Ø | Adjustment in the pricing mechanism whereby both parties will equally share in the gross revenue from the sale of Lithium Hydroxide produced from spodumene supplied by Premier, after deduction of the production costs of both parties.
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Ø | Further prepurchase of spodumene by Canmax from Zulu to assist with ongoing operational costs associated with the revised timelines and expected production figures as announced on the 25 May 2023. |
Canmax have confirmed that their intention is to continue to support Premier and not to terminate the Agreement providing that an addendum between the parties is entered into on or before 25 June 2023.
George Roach, CEO commented, “I am deeply appreciative for the constructive discussion, further assistance, and confirmation of our relationship with Canmax “.
Canmax is interested in 13.14 per cent. of the Company’s issue share capital and is therefore a related party under the AIM Rules and any addendum to the Agreement will be dealt with in accordance with AIM Rule 13.