RNS we await the red dot 🔴31 Jul 2023 14:08
Here’s the text before we hit 50s for a more level playing ground on the market! Importantly it’s good news all the same! IMHO
RNS Number : 6991H
Premier African Minerals Limited
31 July 2023
31 July 2023
Premier African Minerals Limited
Offtake and Prepayment Agreement Update
Zulu and Corporate Update
Premier African Minerals Limited ("Premier" or the "Company"), is pleased to provide a further update on the Zulu Lithium and Tantalum Project ("Zulu") and the Offtake and Prepayment Agreement ("Agreement") entered into between Premier and Canmax Technologies Co., Ltd ("Canmax").
Offtake and Prepayment Agreement
As previously announced on 20 July 2023, the Company received, and acknowledged, a further written notice from Canmax on 17 July 2023 that there is a dispute under the Agreement and that both parties are now required to seek to resolve the dispute in good faith by "friendly negotiation". To the extent that the parties are unable to resolve the dispute in 10 days, then either party may then refer the dispute to arbitration in Singapore.
The Board is pleased to report that these discussions, which remain ongoing, are at an advanced stage and have been constructive. The Board's expectation is that there is a common understanding between the parties and they are close to a satisfactory resolution. Shareholders should note that as CanMax is interested in more than 10 per cent. of the issued ordinary share capital of the Company, any addendum to the Agreement will be a related party transaction for the purposes of Rule 13 of the AIM Rules and will be dealt with in accordance with AIM Rule 13.
Zulu plant modification update
Whilst certain of the required fixes as set out in the announcement dated 26 May 2023 and in the annual financial statements published at the end of June 2023 have been installed, optimisation and full commissioning has not yet been concluded and the plant supplier, Stark International Projects Limited ("Stark") has not been able to deliver spodumene concentrate as expected and production projections will need to be reviewed. The plant has demonstrated its ability to produce concentrates from both the mica and spodumene sections of the floatation plant. The ongoing optimisation will focus on the following key aspects:
·
Increase in density of material provided to the floatation plant;
·
Installation as an intermediate upgrade of redundant RHA Tungsten rod mill at Zulu; and
·
Refinement of the spodumene concentrate to eliminate mica and lepidolite minerals.
Spodumene concentrates produced to date contain in the region of 50% spodumene as determined by XRD analysis, but also up to 30% in mica minerals that cause a dilution of the spodumene grade. With improvements through ongoing optimisation and a refloating of concentrates produced to date, we expect that the plant will produce spodumene to SC6 grade as we have already demonstrated in our on-site laboratory.
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