Cash-strapped lithium developer halts operations until strategic partner approves revised terms for US$46 million prepayment agreement
Premier African Minerals Ltd. has pushed back the planned restart of its Zulu lithium plant beyond July, saying it will not resume operations until concluding “constructive” but protracted negotiations with Chinese strategic partner Canmax Technologies Co. over extending a critical repayment deadline, Mining Zimbabwe can report.
By Rudairo Mapuranga
The London-listed developer had previously targeted July for recommencing a 30-day continuous operating campaign at the Fort Rixon project, following a truncated June commissioning run that delivered encouraging concentrate grades of up to 5.58% Li₂O. However, the company now says it will wait for a formal agreement with Canmax before restarting the plant.
“Subject to agreement being reached, Premier intends to commence the planned continuous operating campaign as soon as possible, with a revised operating timetable to be confirmed thereafter,” Managing Director Graham Hill said in a statement.
Technical Fixes Implemented
During June’s processing operations, the engineering team identified several opportunities to improve plant operability and reliability, which have since been addressed through modifications, upgrades, and regular maintenance. Mining and stockpiling activities remain ongoing at a reduced scale.
The company maintains that building adequate ore inventories on the run-of-mine pad before recommencing operations represents “the most efficient use of available resources” and will maximize value from the next optimisation campaign.
Canmax Negotiations Intensify
The extended timeline reflects ongoing discussions with Canmax over a further extension of the Long Stop Date under the August 2023 prepayment and offtake agreement. Under the deal, Premier committed to supplying spodumene concentrate to Canmax in exchange for upfront funding that now totals approximately US$46 million.
The Long Stop Date is the deadline by which Premier must deliver sufficient SC6 concentrate or provide a cash settlement to repay Canmax’s advance. The most recent extension expired on June 30, with negotiations continuing.
Canmax is currently reviewing the latest operational and commissioning data from the upgraded flotation circuit. While Premier says it remains “confident that a positive outcome can be achieved,” the company cautioned that there can be no guarantee an extension will be agreed upon or on what terms.
Strategic Implications
The proposed extension, alongside the successful completion of the next production and optimisation campaign, would represent “an important step in demonstrating sustained plant performance and supporting the Company’s ongoing engagement with potential strategic investors” for Zulu’s continued development.
Premier’s auditor, MAH Chartered Accountants, has expressed “significant doubt” about the company’s ability to continue as a going concern, highlighting the critical importance of securing additional financing.
The company’s shares have fallen approximately 93% over the past 52 weeks. Premier’s audited accounts for the year ended Dec. 31, 2025, have been published but remain subject to auditor sign-off and consideration of the ongoing Canmax discussions.
