Premier African Minerals Limited has entered fresh negotiations with Canmax Technologies to revise its existing offtake agreement and secure additional funding aimed at expanding production at the Zulu Lithium and Tantalum Project in Fort Rixon, Mining Zimbabwe can report.
The talks are focused on restructuring debt, improving cash flow, and enabling the mine to achieve full operational capacity.
The London-listed miner originally signed the offtake deal with Canmax in 2023, which included prepayment financing for future deliveries of spodumene concentrate.
However, following production delays, Premier is now seeking a revised agreement and supplementary funding to stabilise operations and accelerate output.
In a notice to shareholders, Managing Director Graham Hill emphasised that the ongoing negotiations are crucial to unlocking Zulu’s full production potential.
“The pathway to achieving full capacity at Zulu lies in finalising a revised offtake agreement and securing the necessary funding,” Hill said. “We are making progress with Canmax and a major trading house, both committed to successfully concluding this agreement.”
Hill added that additional site inspections are planned over the coming weeks, complementing ongoing optimisation work at the plant. Operational efficiency and cost management remain key priorities for the company.
“Zulu is a strategic asset with robust resources, established infrastructure, and strong market access,” Hill noted. “The board is confident that the steps we are taking will restore value and create sustainable growth for shareholders.”
Financial Pressures and Outlook
Financially, Premier remains under strain. For the six months ended June 30, 2025, the company reported an operating loss of US$7.68 million, primarily due to administrative expenses and optimisation costs at Zulu.
Cash reserves stood at just US$29,000 at the end of June, although shareholder support continued during the period.
Despite liquidity challenges, the company’s total assets exceeded its liabilities by US$5.88 million. However, current liabilities outweighed current assets by US$54.42 million, largely due to a US$46 million prepayment from Canmax.
Premier stated that this advance will be repaid through spodumene concentrate deliveries, or, if unresolved by December 31, 2025, through equity issuance based on a US$100 million market valuation of Zulu.
The board expressed confidence in Zulu’s long-term value but warned that failure to secure new investment or shareholder approval could raise doubts about the company’s ability to continue as a going concern.
About the Zulu Project
Located approximately 80 kilometres east of Bulawayo, the Zulu Lithium and Tantalum Project is one of Zimbabwe’s largest undeveloped pegmatite deposits.
Covering roughly 3.5 square kilometres, the project hosts significant lithium and tantalum mineralisation, positioning Premier African Minerals as a potential key player in Zimbabwe’s expanding battery minerals sector.
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