Premier African Minerals shares surged higher on Monday after they announced their negotiations with offtake partners Canmax are nearing a ‘satisfactory resolution’ after Canmax issued a termination notice.
Termination of the agreement would require Premier African Minerals to return the prepayment amount of $34.6m, plus interest, within 90 days.
Premier African Minerals shares were 15% higher at the time of writing on Monday on hopes such a scenario will be avoided.
Investors will also be pleased to note improvements to the processing procedures at their Zulu lithium plant will enable the production of SC6-grade lithium.
The failure to deliver the required lithium offtake to Canmax resulted in them issuing their termination notice. The suggestion these targets can now be met will strengthen Premier African Minerals’ hand in negotiations with their partner.
“I am deeply appreciative to our team at Premier and the team from Canmax for the work being undertaken in an effort to find a satisfactory outcome,” said George Roach, CEO of Premier African Minerals.
“In regard to Spodumene concentrate production, it is most encouraging to note that we are able to produce high-grade spodumene concentrates from the plant material in our laboratory and to note that we expect to re-float concentrates produced to date with the intention of having saleable material in the coming weeks.”