Premier African Minerals have received a termination notice from Canmax after failure to deliver the required lithium offtake detailed in their offtake agreement.
Under the terms of the agreement, Premier African Minerals are now required to repay the $34.6m offtake prepayment plus interest within a 90-day period.
However, Premier African Minerals claims the agreement is subject to Force Majeure due to problems with their production plant, and their requirement to repay the prepayment is suspended.
“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,” said George Roach, CEO of Premier African Minerals.
Premier African Minerals shares were up 13% at the time of writing on Thursday but are down 53% over the past five trading sessions.