London Stock Exchange-listed Premier African Minerals Limited has reached a settlement agreement with J.R. Goddard Contracting (Private) Limited, bringing temporary relief to its Zulu Lithium and Tantalum Project in Fort Rixon after weeks of escalating legal and creditor pressure, Mining Zimbabwe can report.
By Rudairo Mapuranga
The agreement halts enforcement action under a Writ of Execution for Movable Property at the Zimbabwean operation, which had threatened the attachment of critical plant and equipment following a High Court judgment.
Under the terms of the settlement, Premier and its Zimbabwean subsidiary, Zulu Lithium Private Limited, have agreed to settle JRG’s claim for an aggregate US$2.4 million, inclusive of interest accruing at the applicable judgment rate on a reducing balance.
The payment structure requires an initial US$400,000 payment by 30 January 2026, followed by monthly instalments running through to November 2026. Provided Premier remains fully compliant with the agreed schedule, JRG has agreed to stay all enforcement action, effectively removing the immediate threat of asset attachment at Zulu.
However, Premier cautioned that the agreement is a forbearance arrangement, not a waiver of JRG’s rights, meaning the contractor retains full legal recourse should the company default at any stage.
Chairman Godfrey Manhambara described the settlement as a “highly positive outcome,” noting that it provides short-term certainty and allows the company to refocus on funding and operational initiatives at Zulu Lithium.
The settlement comes at a sensitive time for Premier, which is working to stabilise operations at Zulu through the planned installation of a 15–20 tonne-per-hour Xinhai flotation plant, while also navigating ongoing discussions with offtake partner Canmax Technologies over prepayment restructuring and long-stop date extensions.
While the agreement removes an immediate legal threat, market watchers note that the settlement adds another structured financial obligation to a balance sheet already under pressure. The company’s ability to honour the repayment schedule will depend heavily on securing interim funding and achieving consistent production at Zulu.
Failure to meet the instalment terms would allow JRG to reactivate enforcement proceedings, potentially reviving the risk of asset seizure.
Premier also used the update to acknowledge the need for stronger governance as it enters what it describes as the next phase of development at Zulu Lithium.
Following a recent board change announced on 5 January, the company confirmed it is actively progressing the appointment of additional, technically focused directors with relevant market and operational experience. The board said this process is being treated as a priority, with further updates expected.
The settlement with JRG represents a temporary stabilisation rather than a final resolution of Premier’s challenges. With creditor repayments scheduled, funding negotiations ongoing, and operational improvements still to be delivered, the coming months will be pivotal in determining whether Zulu Lithium can transition from crisis management to sustainable production.
For shareholders, the deal offers relief but also reinforces how little margin for error remains.
