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Premier African Minerals Limited is facing intensified financial and operational pressure after JR Goddard Contracting (JRG) moved to enforce a long-standing court judgment by issuing a Writ of Execution for Movable Property at the company’s Zulu Lithium and Tantalum Project in Fort Rixon, Mining Zimbabwe can report.
By Rudairo Mapuranga
The enforcement action follows JRG’s earlier demand for US$2.3 million and relates to a previously stayed High Court judgment of approximately US$2.5 million, which Premier has been unable to settle.
The writ, filed in the High Court of Zimbabwe, seeks to get about US$2.2 million through the attachment and sale of movable assets at the Zulu Lithium operation.
While Premier says communication with JRG remains open, the issuance of a writ represents a decisive shift from negotiation to enforcement, raising concerns among investors about potential asset attachment, operational disruption, and further delays at a project already struggling to reach consistent commercial production.
The company has indicated that any assets attached could potentially be recovered through revised payment arrangements, subject to the financial position at Zulu Lithium. However, no binding settlement has been announced, leaving uncertainty around the immediate operational outlook.
The Zulu Lithium project is central to Premier’s investment case, yet it remains under strain from:
- Persistent processing plant challenges
- Reliance on interim equity funding and debt conversions
- Ongoing negotiations with offtake and funding partners
- The urgent need to commission the Xinhai flotation plant to improve recoveries and grades
Market observers note that creditor action targeting on-site assets significantly heightens risk, as any disruption could undermine Premier’s ability to demonstrate the production consistency required to unlock further funding.
Should key movable assets be attached, Premier’s plans to stabilise operations and accelerate commissioning of the new flotation circuit could be delayed, potentially affecting future cash flows and the company’s credibility with lenders.
Although management maintains that the situation can be resolved through further negotiations with JRG, investors are increasingly sensitive to signs that financial constraints are now translating into direct operational exposure.
With enforcement proceedings now active, the spotlight is firmly on Premier’s ability to rapidly secure a negotiated settlement. Failure to do so could exacerbate concerns around liquidity, dilution risk, and the long-term viability of the Zulu Lithium operation as a standalone asset.
