Premier African Minerals reports that it has received a notice of termination from Canmax, following Premier’s service of a Notice of Force Majeure on Canmax on June 25, 2023. The Notice of Force Majeure suspended Premier’s obligations under the agreement and Canmax’s right to terminate.
While Canmax may dispute the grounds for the declaration of Force Majeure, they have yet to formally communicate their position. As a result, Premier has been advised that the Notice of Termination, which requires the repayment of approximately US$34.6m (plus interest) within 90 days, cannot be served at this time.
This development adds another layer of complexity to the ongoing situation between Premier and Canmax. The Notice of Termination is currently on hold, pending further communication and resolution of the Force Majeure dispute.
As shareholders absorb this news, they should be prepared for potential delays or disruptions in the spodumene concentrate production and sales from the Zulu project. The resolution of the Force Majeure dispute will be crucial in determining the future of the agreement and the financial implications for Premier.
Investors will be closely monitoring any further updates from both Premier and Canmax regarding the termination notice and the disputed Force Majeure. The timely resolution of this issue will be instrumental in maintaining investor confidence and ensuring the stability of Premier’s operations and financial position.
George Roach, CEO commented, “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”.
As Canmax is interested in 13.14 per cent. of the Company’s issued share capital and therefore a related party under the AIM Rules, any amendments to the Agreement will be dealt with by AIM Rule 13.