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28 Jun 2023 16:37
28 June 2023
Premier African Minerals Limited
Offtake and Prepayment Agreement Update
Premier African Minerals Limited ("Premier" or the "Company"), provides a further update on the Offtake and Prepayment Agreement ("Agreement") entered into between Premier and Canmax Technologies Co., Ltd. ("Canmax") for spodumene concentrate produced at Zulu Lithium and Tantalum Project ("Zulu").
Premier confirms that it has today received a purported notice of termination of the Agreement ("Notice of Termination") from Canmax following Premier's service of a Notice of Force Majeure on Canmax on 25 June 2023 as announced on 26 June 2023.
Shareholders are reminded that the immediate effect of the Force Majeure ("FM") is the suspension of Premier's obligations under the Agreement and Canmax's right to terminate.
At this stage, whilst Canmax may dispute the grounds for declaration of the FM and are yet to provide formal communication to that effect, as such, Premier has been advised that the Notice of Termination, which requires inter alia the repayment by Premier of the Prepayment Amount of approximately US$34.6m (plus interest as applicable) within 90 days of today's date, cannot be served at this time.
George Roach, CEO commented, "The Company has been advised that this notice of termination has no force or effect. Premier has repeatedly extended an invitation to Canmax to attempt to resolve this situation as set out in the Agreement, and does so again, now, and publicly".
Related Party
As Canmax is interested in 13.14 per cent. of the Company's issued share capital and therefore a related party under the AIM Rules, any amendments 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 |
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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