Incase anyone missed..................24 Apr 2023 13:31
However, there is almost no chance that Canmax will walk away from Zulu, and I also suspect that they may waive the interest due once production begins in the interest of good faith.
Long-time investors are now turning their attention to the possibility of either a buyout or larger strategic investment from this partner, which owns circa 13% of PREM and has 50% of offtake rights.
On 29 March, investors homed in on the delays and the interest penalty, while seemingly completely ignoring Roach’s statement that ‘Premier has received a number of requests from other mining companies already well established in Zimbabwe to discuss our intentions in regard to the future of Zulu for either future offtake and/or direct equity investment into Zulu.’
I’ve covered the PREM buyout thesis in great depth elsewhere. Still, the key advantages to note are that it remains under the $1 billion Chinese Belt and Road Initiative laws, has grandfathered rights regarding selling unprocessed ore, and that the Chinese are already spending hundreds of millions of dollars on lithium mines and associated infrastructure in Zimbabwe that would drastically cut capex costs.