Premier African Minerals continued the rally on Wednesday after announcing it received the support of their lithium offtake partner Canmax Technologies yesterday.
Premier African Minerals have an offtake agreement with Canmax that stipulates Premier African Minerals must supply lithium to Canmax by 30th May, or Canmax has the right to terminate the agreement.
Premier African Minerals announced this date would not be met in May and raised concerns about their ongoing agreement. PREM shares sank as a result.
Yesterday, Premier African Minerals announced that Canmax were not seeking to terminate the agreement and were instead exploring amendments to the agreement. The clarity sparked a rally in Premier African Minerals shares yesterday, and the price held steady on Wednesday.
George Roach, CEO commented: “I am deeply appreciative for the constructive discussion, further assistance, and confirmation of our relationship with Canmax “.
Canmax holds a 13.14% stake in Premier African Minerals and would likely see the value of this stake diminish considerably if they imposed damaging terms on PREM.
Premier African Minerals are around 33% higher than the lowest traded levels in May.
