LONDON - Premier African Minerals Limited ("Premier") has amended its Offtake and Prepayment Agreement with Canmax Technologies Co., Ltd. ("Canmax") regarding the Zulu Lithium and Tantalum Project ("Zulu"), as announced Monday. The updated agreement, initially established in August 2023, modifies the settlement options for Canmax and extends security provisions due to production delays.
Under the revised terms, if any prepayment and interest remain outstanding as of April 1, 2025, Canmax will be entitled to a direct interest in Zulu, valued at $100 million, or new Premier shares at a price based on the prior twenty-day average. This amendment reflects the capital investment in Zulu to date and provides an alternative settlement to cash or product delivery.
Additionally, Premier has agreed to extend Canmax's security by offering a fixed charge over the shares of Zulu Lithium, without impacting Premier's other assets. Canmax also retains the discretionary right to convert interest owed into new Premier shares, maintaining a 13.38% stake in the company post-funding.
The Independent (LON:IOG) Directors of Premier, excluding a board representative from Canmax, have assessed the transaction with guidance from Beaumont Cornish, the company's nominated adviser. They regard the terms as fair and reasonable for shareholders, considering Premier's immediate financial obligations and lack of alternative funding sources. The directors emphasized Canmax's role as a principal creditor and funding partner, essential to Premier's ongoing viability.
Canmax, holding more than 10% of Premier's issued share capital, is listed on the Shenzhen Stock Exchange under the ticker 300390. The company has a market capitalization of approximately $2.6 billion and has historically provided substantial support to Premier.
This announcement, classified as inside information under the Market Abuse Regulations, was arranged by Godfrey Manhambara for Premier. The information in this article is based on a press release statement from Premier African Minerals Limited.
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