Last checked at 6 Jun 2023 11:03
6 June 2023
Premier African Minerals Limited
Offtake and Prepayment Agreement
Premier African Minerals Limited ("Premier" or the "Company"), is pleased to provide an update on the Offtake and Prepayment Agreement ("Agreement") entered into between Premier and Canmax Technologies Co., Ltd., formerly known as Suzhou TA&A Ultra Clean Technology Co. Ltd, ("Canmax").
In accordance with the terms of the Agreement entered into on 3 August 2022, Premier was required to supply product by 30 May 2023, Canmax now have 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.
Premier has been accruing interest at 3.5% per annum (subject to adjustment from time to time in accordance with loan prime rate as published by the People's Bank of China) to Canmax in accordance with the Agreement.
Canmax and Premier are in advanced discussions pertaining to an addendum to the Agreement to allow for the following:
Ø | Adjustment in the pricing mechanism whereby both parties will equally share in the gross revenue from the sale of Lithium Hydroxide produced from spodumene supplied by Premier, after deduction of the production costs of both parties.
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Ø | Further prepurchase of spodumene by Canmax from Zulu to assist with ongoing operational costs associated with the revised timelines and expected production figures as announced on the 25 May 2023. |
Canmax have confirmed that their intention is to continue to support Premier and not to terminate the Agreement providing that an addendum between the parties is entered into on or before 25 June 2023.
George Roach, CEO commented, "I am deeply appreciative for the constructive discussion, further assistance, and confirmation of our relationship with Canmax ".
Related Party Transaction
Canmax is interested in 13.14 per cent. of the Company's issue share capital and is therefore a related party under the AIM Rules and any addendum to the Agreement will be dealt with in accordance with AIM Rule 13.
MAR (Market Abuse Regulation)
The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 as it forms part of UK Domestic Law by virtue of the European Union (Withdrawal) Act 2018.
The person who arranged the release of this announcement on behalf of the Company was George Roach.
Enquiries:
George Roach | Premier African Minerals Limited | Tel: +27 (0) 100 201 281 |
Michael Cornish / Roland Cornish | Beaumont Cornish Limited (Nominated Adviser) | Tel: +44 (0) 20 7628 3396 |
Douglas Crippen | CMC Markets UK Plc | Tel: +44 (0) 20 3003 8632 |
John More/Toby Gibbs | Shore Capital Stockbrokers Limited | Tel: +44 (0) 20 7408 4090 |
Forward Looking Statements:
Certain statements in this announcement are or may be deemed to be forward looking statements. Forward looking statements are identied by their use of terms and phrases such as ''believe'' ''could'' "should" ''envisage'' ''estimate'' ''intend'' ''may'' ''plan'' ''will'' or the negative of those variations or comparable expressions including references to assumptions. These forward-looking statements are not based on historical facts but rather on the Directors' current expectations and assumptions regarding the Company's future growth results of operations performance future capital and other expenditures (including the amount. Nature and sources of funding thereof) competitive advantages business prospects and opportunities. Such forward looking statements reect the Directors' current beliefs and assumptions and are based on information currently available to the Directors. A number of factors could cause actual results to differ materially from the results discussed in the forward-looking statements including risks associated with vulnerability to general economic and business conditions competition environmental and other regulatory changes actions by governmental authorities the availability of capital markets reliance on key personnel uninsured and underinsured losses and other factors many of which are beyond the control of the Company. Although any forward-looking statements contained in this announcement are based upon what the Directors believe to be reasonable assumptions. The Company cannot assure investors that actual results will be consistent with such forward looking statements.
Notes to Editors:
Premier African Minerals Limited (AIM: PREM) is a multi-commodity mining and natural resource development company focused on Southern Africa with its RHA Tungsten and Zulu Lithium projects in Zimbabwe.
The Company has a diverse portfolio of projects, which include tungsten, rare earth elements, lithium and tantalum in Zimbabwe and lithium and gold in Mozambique, encompassing brownfield projects with near-term production potential to grass-roots exploration. The Company has accepted a share offer by Vortex Limited ("Vortex") for the exchange of Premier's entire 4.8% interest in Circum Minerals Limited ("Circum"), the owners of the Danakil Potash Project in Ethiopia, for a 13.1% interest in the enlarged share capital of Vortex. Vortex has an interest of 36.7% in Circum.
In addition, the Company holds a 19% interest in MN Holdings Limited, the operator of the Otjozondu Manganese Mining Project in Namibia.
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