Interest cost3 Apr 2023 13:43
In regards to Premier's self-imposed internal commissioning target of 14 February 2023 having been missed, has anyone calculated the interest we will now be paying?
Premier was adequately funded to that projected date. It may be necessary to either increase the prepayment amount under current Marketing and Pre-Payment Agreement or accept a short-term loan facility secured against spodumene to be produced to meet operating costs at Zulu in the coming weeks, which we now cannot produce without the reagent.
Marketing and Pre-Payment Agreement ("Agreement")
In accordance with the Agreement entered into between Premier and Suzhou TA&A Ultra Clean Technology CO. LTD. ("Suzhou TA&A") as announced on 24 June 2022, Premier was required to supply product by the 31 March 2023. Suzhou TA&A will begin charging interest at rate 3.5% per annum on the prepayment amount of US$34,644,385 from the 1 April 2023. Premier will have until 30 May 2023 to begin providing Suzhou TA&A with product in accordance with the Agreement, a failure to do this will provide CanMax with the right to terminate the Agreement by notice in writing to Premier and Premier will need to enact repayment of the prepayment amount plus interest in full within ninety (90) days of such termination notice.
So that’s 3.5% on US$34,644,385, annoyingly.