Premier African Minerals Secures Extended Timeframe for Zulu Lithium Project Offtake Agreement with Canmax

Premier African Minerals has secured additional time to fulfil obligations under its lithium offtake and prepayment arrangement with Chinese partner Canmax Technologies, providing the company with a six-month extension to resolve its funding structure for the Zulu Lithium and Tantalum Project in Zimbabwe.

The revised agreement extends the Long Stop Date from 31 December 2025 to the earlier of 30 June 2026 or the date on which an alternative purchaser, acceptable to Canmax, agrees to settle the outstanding prepayment balance. The extension represents a significant development for the company as it seeks to maintain progress on one of southern Africa’s more advanced lithium prospects.

Under the amended terms, Premier African Minerals has been relieved of the previous requirement to obtain a non-binding expression of interest from a third-party buyer within a 30-day window. This adjustment provides management with greater flexibility in negotiating potential alternative arrangements without the constraint of an immediate deadline.

The revised agreement does, however, impose certain operational constraints. Premier must retain its existing management structure across both the parent company and its Zulu subsidiary throughout the extension period. The company is also required to maintain the comprehensive security package that was established in December 2024, ensuring Canmax’s interests remain protected.

Should Premier African Minerals fail to satisfy any of the stipulated conditions, Canmax maintains the authority to exercise its full contractual rights under the amended framework. This provision ensures the Chinese partner retains significant leverage throughout the extended negotiation period.

Graham Hill, managing director of Premier African Minerals, acknowledged the importance of Canmax’s continued partnership, noting that the revised timeframe offers necessary clarity as both parties work towards a satisfactory resolution for the Zulu project.

The offtake and prepayment agreement was initially executed in August 2023 and has since undergone two prior revisions. The arrangement serves as the principal funding mechanism for the Zulu project, which continues to represent a key asset in the company’s portfolio of lithium development opportunities in the region.

Market participants responded positively to the announcement, with Premier African Minerals shares advancing 23% during morning trading, reflecting investor confidence that the extension provides adequate breathing room to secure a viable long-term funding solution.