Premier African Minerals Ltd (AIM: PREM) shares rallied as it reiterated the latest move from partner Canmax in an escalating dispute will have no impact.
Canmax has now served official notice to end an offtake and prepayment agreement for spodumene concentrate produced at the Zulu lithium and tantalum project, Premier said.
This follows a notice of Force Majeure being served on Canmax by Premier at the weekend.
The UK firm said the immediate effect of the Force Majeure is the suspension of Premier’s obligations under the agreement and Canmax’s right to terminate.
Premier added it has been advised that Canmax’s notice of termination, which requires the repayment by Premier of the prepayment amount of approximately US$34.6mln plus interest within 90 days of today’s date, cannot be served at this time.
George Roach, Premier’s chief executive, said: “The company has been advised that this notice of termination has no force or effect.
“Premier has repeatedly extended an invitation to Canmax to attempt to resolve this situation as set out in the agreement, and does so again, now, and publicly”.
Canmax has a 13.1% stake in Premier African Minerals.
Shares in Premier African Minerals rose by 12% to 0.33p.
PAI
