Premier African Minerals has issued over 1.6 billion new ordinary shares to settle accrued interest on a director’s loan, Mining Zimbabwe can report.
By Rudairo Mapuranga
The issuance of the shares comes at a time when the company’s flagship Zulu Lithium and Tantalum Project in Fort Rixon is ramping up operations after hitting a notable 5% lithium oxide grade, positioning itself among the highest-performing spodumene producers in the region.
Premier announced on Monday that it had issued 1,666,666,667 new shares at 0.012 pence per share, raising £200,000 in equity to settle unpaid interest on a 2023 loan advance by CEO George Roach. The settlement, which represents 2.1% of the company’s current issued share capital, follows the same pricing terms as Premier’s last market-based subscription announced on 11 June 2025.
According to the company, the issuance forms part of a broader strategy to clean up its balance sheet while navigating delays in debt restructuring and production stabilisation.
“This settlement allows us to focus our capital resources on operational priorities at Zulu,” Premier said in a statement, emphasising the importance of sustaining production in a challenging lithium market.
Following the share issue, George Roach now holds 2.91 billion shares, equating to a 3.8% stake in the company. While interest on the loan had initially been waived, it became payable following a technical default. The total accrued interest stood at £207,741.77 as of 30 June 2025. Roach has agreed to defer any repayment until 21 June 2026, or until a buyer acceptable to Canmax Technologies steps in to manage the outstanding prepayment arrangement.
This extension, however, is conditional—should Premier default again, the agreement may be revoked.
While sorting out its financials, Premier is making strong technical progress at the Zulu Lithium and Tantalum Project near Fort Rixon, Zimbabwe.
The company recently announced that its pilot plant has hit a 5% Li₂O concentrate grade, exceeding initial expectations. The news comes as the Zulu plant moves closer to consistent, steady-state production—a key step in restoring investor confidence and securing long-term offtake deals.
“The plant is now consistently producing spodumene concentrate exceeding 5.0% Li₂O with better recoveries,” Premier revealed earlier this month. “This is the grade we set out to achieve and positions Zulu among the best producers in terms of concentrate quality.”
This milestone follows a series of mechanical upgrades and process adjustments after commissioning delays and recovery issues hampered initial output earlier in the year. Since resuming operations in earnest in May 2025, Zulu has not only resolved its recovery challenges but is now exporting spodumene concentrate that meets international benchmark standards.
According to Premier, the next focus is stabilising production volumes to align with target throughput. As plant modifications near completion, the company expects the facility to operate at full nameplate capacity—transforming Zulu into a reliable upstream contributor to the global battery minerals supply chain.
Despite these operational improvements, Premier remains entangled in a complex financial situation with Canmax Technologies, its Chinese prepayment partner.
In 2023, Premier received significant prepayment funding from Canmax in exchange for future lithium deliveries. However, production delays triggered a breach of contract. Although litigation was avoided, Canmax has since withheld additional funds, pending Premier’s ability to demonstrate consistent spodumene delivery.
The current deferral agreement between Roach and Premier hinges on Premier either repaying Canmax or securing a third-party buyer acceptable to Canmax who can assume and service the outstanding liability.
This explains why every tonne of spodumene Zulu ships is not just a boost for revenue—it’s a critical step in regaining Canmax’s trust or attracting a new strategic offtake partner.
The recent equity issuance and deferral arrangements also aim to avoid cash strain on day-to-day operations. Premier has consistently shown a preference for managing liquidity through non-cash settlements and strategic share placements—especially while the company awaits improved cash flow from Zulu’s production ramp-up.
With total issued shares now at 77.67 billion, investors will be watching closely to see whether the capital structure can hold or if further dilution may be necessary.
“Premier is now focused on maintaining performance from the Zulu plant and meeting delivery commitments, while balancing capital needs with shareholder value,” the company said.
