Shares of Premier African Minerals suffered a 15% nosedive on Friday, closing at 0.38 pence per share, down from 0.44 pence. The precipitous drop was triggered by unresolved issues at the company's Zulu lithium and tantalum project in Zimbabwe, which have put its off-take and prepayment agreement with Canmax Technologies in jeopardy.
The mining company is contracted to supply Canmax Technologies with 1,000 metric tons of spodumene by November 25. However, ongoing commissioning, optimization issues, and material-flow challenges at the Zulu project have created uncertainty around Premier's ability to meet this deadline.
CEO George Roach underscored the importance of adhering to the shipment schedule. He highlighted the potential risks to the company's deal with Canmax Technologies if the delivery deadline is not met.
In a related development, Stark International Projects, the operator of the Zulu project plant, has accepted a payment of $2.5 million in Premier African Minerals' shares. These shares were priced at 0.44 pence each, indicating a higher valuation than the current market price after Friday's drop.
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