LONDON (Alliance News) - Premier African Minerals Ltd on Tuesday said it has terminated discussions with KME Plant Hire Proprietary Ltd over the Zulu lithium project in Zimbabwe.
Shares in the mining and natural resource development firm were down 14% at 0.073 pence in afternoon trade.
Premier African will now "urgently reopen previous discussions" with its former Zulu drill contractor to recommence drilling, believing the previous contractor to be most familiar with the project.
KME and Premier were "unable to conclude a revised pricing structure for the long form drilling contract" at Zulu in a way that satisfied both parties. The KME drill programme will not continue and discussions have been brought to an end.
Premier African had previously issued 212.4 million shares at a price of 0.145 pence each to KME as pre-payment. These shares were admitted to trading but not yet released to KME's control, pending a drill contract.
Given a contract will not materialise, all 212.4 million KME shares have been cancelled and Premier African has applied to AIM to cancel the shares, which is expected to occur on or near Tuesday next week.
Premier African Minerals (PREM)