Member Info for picardy9

In just over a week the Off-Take Agreement will cease and Canmax will be entitled to take around 65% of Zulu. I suspect that they will then make a derisory bid for the remaining 35%. They don't need any more shares as they don't need to buy PREM when they have Zulu.

PREM will go into administration; it wouldn't surprise me is if shares are suspended tomorrow or next Monday.

Jag

Do you know PREM's current indebtedness to Canmax is? It is clearly impossible to repay the debt in PREM shares, so how much of Zulu is going to Canmax next week (assuming the long stop date is not extended)?

Jag

I don't think George lied about the ore. The October 2024 RNS laid out the problems but few investors read it in full or understand it. An average of 0.54% Li2O at 0% cut-off should have been the red flag., as well as the fact that lack of drilling meant that half of the ore was in the Inferred category (which would not even count in a DFS). The fact that George chose to use an alternative to JORC was also a concern (JORC-like is nor JORC). We now know that some of the ore body is contaminated.

A current worry must be the $100m valuation of Zulu agreed by George and Canmax last December. If the long stop date is not extended the Off-Take agreement terminates on 31st December. At this point PREM will need to repay the Canmax debt, either by issuing more PREM shares (how many billion would that be?) or a giving up a large percentage of Zulu. George should really have linked the Zulu valuation to the SPOD price. If he had PREM might have survived a bit longer.

Very odd response. A lot of trades today and the vast majority are buys and yet the sp plummets. There must be a massive sell in the background that has not yet shown

@randomaxe

GH detailed round-up of the last set of tests mentioned that the produced concentrate was contaminated. He didn't say what the contaminant was, but it was concerning enough for them to start extraction ore from a different area.

Interestingly there was not a single comment about it on this BB.

If (and it's a big IF) part of the ore body is contaminated, it would either mean that concentrate would have to be sold at a discount or it might not be saleable.

@nc10g09

Mike has said many times that there will be further in-fill drilling in lyan and beehive in 2026 to turn what will be inferred estimates in the next JORC into reserves. He has also said that he is not sure all the exploration drilling this year will be able to be included in the forthcoming JORC (it is dependent on distance between drill holes). Surprised you haven't listened to MR's interviews.

And now below 8p.

I know that BRES was funded through to DFS, and will presumably receive the final tranche ($250,000) from DFC as well as receipts from exercised warrants and options, but I doubt it has the funds for the planned 2026 drilling campaign.

A raise any time soon will take the sp back into the 6's. I just hope that BRES has learned its lesson and doesn't issue any more warrants.

And no I'm not a de-ramper; I've been invested here for 4 years and don't have the cash to add to my 300K holding.

Nice summary @Reserved

The other point I picked up was the noble gas expert (can't remember his name) saying that is wasn't difficult to separate HE3 from HE4, and suggested three different methods. He also said that assaying HE3 was simple and cost about $750 and half a day's work.

Acker

There is another possibility. Perhaps GH realised the forthcoming placing would not raise the required funding (which presumably has increased by a further $1m to cover the flotation tank and its installation and commissioning) and is planning to ask for shareholders for much more headroom (say 8-10 billion extra shares). In which case he'll need Canmax approval.

It's never boring with PREM.

I think the RNS just raised more question:

> If GH was so confident about the plant, why order the new flotation tank?

> How's it to funded?

> What effect does it have on the timescales for the next test?

> What has audit turned up?

> Why was the meeting postponed?

We live in interesting times.

These delays are really holding back the share price. The tweet on X today said that the North Syncline results will be another week (although we don't know when Mike recorded it). These will only be the results of the in-fill drilling and I suspect a similar muted response from the market as there was to last week's results for Camp Lode. Increasing the reserve (i.e. measured and indicated) without a significant improvement in the MRE is unlikely to move the sp,

We need the results from the North Syncline expansion drilling to increase the MRE and there is no confirmation that these will be delivered in time for inclusion in the DFS. This could have a major effect on the NPV.

A couple of months ago, I was confident of a share price of 20p post DFS; it is now looking as though 10p is more realistic.

@inspirednotion

There will be a raise once the EGM gives approval for the additional shares. If history tells us anything, the raise will be at a large discount (30%+) to the current share price and the sp will quickly fall to just above the raise price.

If you are seriously considering investing in PREM (I sold out a year ago) then I suggest you wait until after the raise.

@ACKER

Will PREM be able to raise the $6m required? Looks doubtful at present.

Found HREE by accident earlier today. Watched the latest interview and decided to follow RAB and dip my toes in. Just 100K shares for now but hopefully will top up in December.

@Mugwump083, you are truly a believer in PREM.

Let me give the counter-argument. Firstly, I am not a current investor in PREM. I sold my last PREM shares a year ago after reading the 16th October 2024 RNS. I would advise all investors to read that RNS as it is very enlightening, but more on that later.

Your first paragraph bears no resemblance to the facts. The plant has been commissioned but there has been no assurance that it is capable of producing SC6 consistently. If that were the case why has it been necessary to carry out further 'optimisation'? Commissioning normally means that the plant has met the design targets (i.e. ore processed, output yield and grade). With PREM, shareholders are not provided with this information.

I remember the Stockbox interview when George stated that he had calculated production costs at $500 per ton, but he admitted that the figure had not been independently reviewed. Since that interview, I've not seen any evidence to back up his claim. Let's face it, George said a lot of things in interviews that turned out not to be true.

The price for SC6 concentrate is around $830 per mt, but I understand that Canmax offtake has a 10% discount. I would also point out that the lithium concentrate prices are not linear. If PREM can only produce SC5 the price will be a lot less than 5/6 of the SC6 price. Lithium processors will pay a premium for high grade concentrate but want a discounted price for poorer grades.

Which brings me back to that 16th October 2024 MRE RNS. The average grade of the Zulu ore is 0.54% Li2O, well below that of most lithium mines. Even more surprising, yto me, was the fact that PREM used a 0% cut-off. All the other lithium explorers I have looked at use a 0.5% cutoff, meaning they do not include any ore under 0.5% in the MRE. If PREM used the same cut-off as their competitors, its total ore body would reduce from 34.365mt to somewhere around 18mt. The other remarkable thing about the MRE is that only 0.313mt is in the measured category and over half is in the lowest inferred category. Basically, without a lot more drilling, PREM will not know where its best ore is. I have never seen any plant go into production with such a low measured category.

I know George once said that grades don't matter and others on this board have said the same. They are wrong, grades do matter and I do not believe that PREM will ever consistently produce SC6b= (or SC5.5 for that matter).

No PREM is definitely not a good investment.

PLSR have not yet announced the start of the drill program, which was due in September. Perhaps the rig has been used to unblock Jetstream 2?

The sudden rise late Friday afternoon suggests a leak to me.

MR did say early Q4 in an interview which could mean sometime before 15th November.

The DFS was originally promised for Q4 2024. I know that it was put back for very good reasons (e.g. additional drilling required as part of the DFC grant and the inclusion of the downstream processing plant) but BRES has a habit of missing deadlines.

We just need to be patient.

Presumably Jangada have retained their BRES warrants (8p?) which might act as a drag on the sp in the future (assuming we get past 8p).

I'm not sure that graphene will mean much demand for graphite. It is a technology that is looking for a practical application. Yesterday, Versarien (VRS) a leading graphene supplier, who have worked closely with Manchester University, announced that it was going into liquidation.

Doesn't this just relate back to the shares that Canmax took in lieu of interest payment (see 2nd July RNS)?

Hasiba..

If you read the last MRE RNS, you will note that spodumene is NOT the only lithium bearing mineral at Zulu.

Surely economic viability is dependent on the market price. What was viable when spodumene concentrate was $8,000pt is not necessarily viable when the price is now c$850pt. ALL is intending to sell its fines but they will not get SC6 prices for it.

Kodal with its average 1.25% Li2O ore body is aiming to produce SC5.5.

Why do people believe that PREM with its average 0.54% Li2O ore body can produce SC6? Is PREM's plant more than 2.5 times more efficient than Kodal's? Bear in mind that until a year ago GR was promising SC7!

I do not believe that Zulu (Canmax or PREM) will ever be able to produce SC6 in bulk consistently. DYOR