Premier African Minerals Limited has entered fresh negotiations to revise its offtake agreement with Canmax Technologies and secure additional funding to increase production at its Zulu Lithium and Tantalum Project in Fort Rixon,Mining Zimbabwe can report.
By Ryan Chigoche
The discussions aim to restructure debt, improve cash flow, and allow the mine to reach its full operational capacity.
The British-listed miner initially signed an offtake deal with Canmax in 2023, which provided prepayment financing for future spodumene concentrate deliveries.
Following delays in meeting production targets, Premier is now seeking a reworked agreement and supplementary funding to stabilise operations.
In a notice to shareholders managing director Graham Hill said the negotiations are key to unlocking Zulu’s production potential.
“The pathway to achieving full capacity at Zulu lies in finalising a revised offtake agreement and securing the necessary funding,” Hill said. “We are making progress with Canmax and a major trading house, both committed to concluding this agreement successfully.”
Hill noted that additional site inspections are scheduled in the coming weeks, complementing ongoing optimisation work at the plant. Operational improvements and cost management remain a central focus for the company.
“Zulu is a strategic asset with strong resources, infrastructure, and market access,” Hill added. “The board is confident that the steps we are taking will restore value and create sustainable growth for shareholders.”
Financially, Premier is under pressure. For the six months ended June 30, 2025, the company posted an operating loss of US$7.68 million, largely due to administrative and optimisation costs at Zulu. Cash reserves stood at US$29,000 at the end of June, although shareholder support continued during the period.
Despite limited liquidity, total assets exceeded liabilities by US$5.88 million. Current liabilities, however, outweighed current assets by US$54.42 million, primarily because of a US$46 million prepayment from Canmax.
The company said this advance would be repaid through spodumene concentrate deliveries or, if unresolved by December 31, 2025, via equity issuance based on a US$100 million market valuation of Zulu.
The board remains confident in the long-term value of Zulu but cautioned that failure to secure new investment or shareholder approval could cast doubt on the company’s ability to continue as a going concern.
Located about 80 kilometres east of Bulawayo, the Zulu Lithium and Tantalum Project is one of Zimbabwe’s largest undeveloped pegmatite deposits.
Spanning roughly 3.5 square kilometres, the site contains significant lithium and tantalum mineralisation, positioning Premier as a potential key player in Zimbabwe’s growing battery minerals sector.
