At the end of trading on Christmas Eve, Premier African Minerals (LON: PREM) announced an amended offtake and prepayment agreement with Canmax Technologies for the Zulu lithium and tantalum project. It could result in Canmax taking a stake in Zulu lithium.
The settlement options for Canmax Technologies have been adjusted in respect of prepayment amounts that are outstanding on 1 April 2025. If Premier African Minerals does not deliver the required product of provide cash settlement, Canmax Technologies is entitled to a direct stake in Zulu lithium at a valuation of $100m. The alternative is settlement in Premier African Minerals shares.
The security over shares in Zulu Lithium has been extended because of the delay to production. Canmax Technologies owns 13.4% of Premier African Minerals and it has the right to take interest payments in shares.