Source: Premier secures extended deadline on Zulu lithium supply deal –Newsday Zimbabwe
PREMIER African Minerals Limited has secured an extension to its offtake and prepayment agreement with Canmax Technologies Co., Ltd, giving the miner more time to deliver spodumene concentrate from its Zulu lithium project.
The extension amends the restated offtake and prepayment agreement originally signed in August 2023, under which Premier committed to supply spodumene concentrate to Canmax, which in turn provided upfront funding to support the project’s development.
Premier had failed to meet certain performance obligations under the agreement, prompting negotiations to revise the terms to unlock the processing plant’s full capacity, restructure debt and secure sufficient working capital to sustain operations.
The Zulu Lithium and Tantalum Project, located about 80 kilometres from Bulawayo, is regarded as one of Zimbabwe’s largest undeveloped lithium-bearing pegmatite deposits. It comprises 14 mineral claims covering approximately 3,5 square kilometres, with significant lithium and tantalum potential.
In a statement, Premier said its board believes that it has a valuable asset in Zulu, with an estimated fair value in accordance with the prepayment and offtake agreement of US$100 million.
Under the amended terms, the long stop date has been extended from December 31, 2025, to “the earlier of June 30, 2026, or the date on which a reputable buyer acceptable to Canmax” enters into a binding agreement to settle or manage Canmax’s prepayment amount plus interest.
The conditions for the long stop adjustment remain consistent with those announced on April 1, 2025, with new amended conditions, Premier said.
Other conditions include restrictions on changes to the current office bearers of both Premier and Zulu Lithium Private Limited without Canmax’s prior written consent, and the continued maintenance of the security package announced on December 24, 2024.
Canmax retains the right to immediately exercise all its rights and powers under the amended agreement.
“We are grateful for Canmax’s continued support and collaboration, and the revised long stop date provides welcome clarity as we work together towards a successful outcome at Zulu,” Premier managing director Graham Hill said.
In October 2025, Hill revealed that the key to unlocking Zulu’s full production capacity lay in ongoing discussions over a revised offtake agreement and the securing of a complementary funding package.
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