London-listed Premier African Minerals has reached agreement with Canmax Technologies to further extend the long stop date under the restated offtake and prepayment agreement originally entered into by the parties in August 2023 in respect of the Zulu lithium and tantalum project, in Zimbabwe, to December 31.

In connection with the extension, Premier, Zulu Lithium Private and Canmax have also entered into a tripartite priority and subordination agreement which establishes the contractual priority of amounts owing to Canmax under the amended agreement over amounts owing by Zulu Lithium to Premier and other members of the Premier group.

“We are grateful for Canmax’s continued support and constructive engagement with Premier and Zulu. The extension of the long stop date to December 31 provides additional time and certainty as we continue to progress Zulu and work towards an appropriate long-term resolution of the existing arrangements with Canmax,” says Premier MD Graham Hill.

“The subordination agreement provides clarity as to the respective creditor positions between Canmax, Premier and Zulu Lithium while preserving Premier’s underlying claims against Zulu Lithium. We believe the combination of the extended long stop date and continued support of our principal creditor provides an appropriate framework within which Premier can continue to advance Zulu,” he adds.

The terms of the amended agreement remain substantially unchanged otherwise.

Under the subordination agreement, all present and future amounts owing by Premier and/or Zulu Lithium to Canmax under or in connection with the amended agreement, including the outstanding prepayment amount and accrued interest, constitute the senior indebtedness; while all present and future amounts owing by Zulu Lithium to Premier or any other member of the Premier group, including loans, advances, intercompany balances and accrued amounts, constitute the subordinated indebtedness.

As at September 10, the senior indebtedness is about $48.73-million. The subordinated indebtedness is about $55.75-million, comprising amounts advanced directly by Premier and through Zulu Lithium Mauritius.