London Stock Exchange-listed mining and exploration junior Premier African Minerals Limited has amended the terms of options granted to its directors and management, removing the earlier ability for the options to become exercisable before specified production milestones at the Zulu Lithium and Tantalum Project in Fort Rixon are achieved, Mining Zimbabwe can report.
By Rudairo Mapuranga
The company announced the changes in a regulatory statement on Thursday, saying the amended terms are intended to link the exercise of the options more closely to Zulu’s production performance.
The amendments apply to the options granted on 27 May 2026. The number of options, their exercise prices and the final expiry date of 27 May 2037 remain unchanged.
Under the revised structure, the relevant options cannot be exercised until eight months after the applicable Zulu production milestone has been achieved.
The four production milestones are based on cumulative production of spodumene concentrate with a specification of approximately SC6.
The first tranche carries an exercise price of 0.0185 pence and is linked to production of 12,000 tonnes of SC6. The second carries an exercise price of 0.023 pence and is linked to 24,000 tonnes, while the third carries an exercise price of 0.028 pence and is linked to 36,000 tonnes.
The fourth tranche carries an exercise price of 0.036 pence and is linked to production of 48,000 tonnes of SC6.
The options were originally granted to Premier’s directors and management in May, with the overall award comprising 2.4 billion options.
The May terms provided an earlier time-based route to exercise alongside the production milestones. The latest amendment removes that earlier route, meaning the relevant production milestone must now be achieved before the eight-month period leading to exercise can begin.
Canmax alternative
Premier has also retained an alternative mechanism under which the eight-month period can begin following an Alternative Vesting Event involving the settlement of the Canmax prepayment obligation.
Under the provision, the alternative event can occur where the Canmax Prepayment Amount, together with accrued interest, is repaid, settled, compromised, discharged, waived, released, novated, transferred or assumed by a third party.
The provision is linked to Premier’s wider financing arrangements with Canmax Technologies Co., Ltd., which remains the senior creditor in relation to the Zulu prepayment arrangements.
As at 10 September 2026, Premier reported Senior Indebtedness to Canmax of approximately US$48.73 million.
The Canmax arrangements form part of the financial backdrop to Premier’s efforts to restart and stabilise operations at Zulu.
Zulu production focus
The option changes come as Premier continues work to restart and optimise the Xinhai flotation plant at Zulu.
The company has been targeting stable and continuous production of approximately 2,000 tonnes of spodumene concentrate per month once the plant is operating consistently and producing material to the required specifications.
Premier said in its September operational update that approximately 12,500 tonnes of run-of-mine ore was available for processing, with plans to increase the stockpile to about 20,000 tonnes to support continuous plant operations.
The company has also said it intends to commence commercial sales as soon as practicable following a successful plant start-up and achievement of the required product specifications.
The revised option structure therefore places defined production milestones between the management option awards and their eventual exercise, while preserving the separate alternative mechanism linked to settlement of the Canmax obligation.
Premier’s latest amendment does not change the number of options awarded, their exercise prices or their ultimate expiry date.
