Aim-listed Premier African Minerals’ share price on the LSE fell by more than 23% on Monday after it announced it had been unable to reach final terms with UK-based mining investment firm Cadence Minerals to fully fund a definitive feasibility study (DFS) for the Zulu lithium and tantalum project, in Zimbabwe.
The company will provide a further update on alternative strategies for the development of the Zulu project in the coming weeks, it said.
Premier and Cadence in August agreed to extend the due diligence period on Premier’s Zulu project by a further 20 days until September 14, following unexpected interruptions as a result of the recent elections in Zimbabwe.
The parties in June entered into a heads of terms agreement to fund the DFS for the Zulu project.
Cadence’s investment of up to $5.1-million would secure it a 30% stake in the project.
A scoping study on the project, completed in November 2017, reported targeted production of 84 000 t/y of spodumene concentrate and 32 500 t/y of petalite, with gross revenues estimated at $1-billion.
The study determined a mineral resource estimate of 20-million tonnes at 1.06% lithium oxide, containing 526 000 t lithium carbonate equivalent.