AIM-listed mining and exploration junior Premier African Minerals Limited has confirmed the issuance of 1,184,253,059 new ordinary shares to its strategic partner, Canmax Technologies Co., Ltd, following Canmax’s election to convert accrued interest of approximately US$368,000 under their existing Restated and Amended Offtake and Prepayment Agreement, Mining Zimbabwe can report.
By Rudairo Mapuranga
The conversion, announced on Tuesday, was executed at an issue price of 0.023 pence per share, identical to the direct subscription price Premier disclosed on 21 August 2025. The new shares, which will be admitted to trading on AIM around 8 September, will rank pari passu with the company’s existing ordinary shares. Following this transaction, Premier’s issued share capital now stands at 84,859,029,039 ordinary shares.
The Canmax–Premier relationship dates back to August 2022, when the two companies entered into a prepayment and offtake agreement valued at approximately US$34.7 million. Under that deal, Canmax agreed to provide funding for the construction and commissioning of Premier’s flagship Zulu Lithium and Tantalum Project in Fort Rixon, Zimbabwe, in exchange for exclusive offtake rights to spodumene concentrate produced at the mine.
However, commissioning delays and plant performance issues at Zulu in 2023 strained the partnership, culminating in Canmax issuing notices of default. After months of negotiations, the parties reached a settlement and restructuring agreement in December 2024, which included provisions allowing Canmax to convert accrued interest into equity.
That addendum stabilised the relationship and reaffirmed Canmax’s commitment to Zulu, while providing Premier with vital breathing space to optimise the plant and move closer to commercial production.
By converting interest into equity rather than demanding cash repayment, Canmax has signalled continued confidence in Premier’s long-term prospects. For Premier, the move helps conserve much-needed cash as it focuses on optimising its large-scale spodumene flotation plant, which is one of the most advanced lithium processing facilities in Africa.
The company recently confirmed that its operational review indicated no major design changes are required at Zulu, and tests underway with supplier Enprotec are expected to guide an optimised restart. Premier is targeting spodumene production costs of around US$500 per ton but has acknowledged that additional funding will be required to resume operations later in September.
The latest share issue further cements Canmax as one of Premier’s largest shareholders and underscores its role as both financier and offtake partner. As Zimbabwe positions itself as a critical supplier of lithium for the global energy transition, the partnership between Premier and Canmax remains pivotal to unlocking Zulu’s full potential.
