Premier African Minerals Shares Slump After Canmax Agreement Misses Deadline

By Elena Vardon

Premier African Minerals shares fell 37% on Monday after the company said it hasn’t reached an agreement to amend its supply deal with Canmax Technologies by the given deadline, and that it won’t accept the current terms proposed.
At 0816 GMT, shares were down 0.26 pence at 0.44 pence.

Earlier in June, the London-listed miner said Canmax wouldn’t terminate their supply agreement despite delays to the first shipment of spodumene concentrate–due to modifications at its Zulu Lithium and Tantalum project in Zimbabwe–provided the companies agree an amendment to the deal on or before June 25.
On June 23, Canmax had proposed amendment terms which included the conversion of the prepayment amount owed by Premier into a convertible debt instrument, or a proportionate amount of the equity of Zulu, Premier said. It also proposed the sale to Canmax of all concentrate produced at Zulu at fixed prices with limited ability for Premier to accommodate cost variations, the miner said.
Premier said it will continue to engage in talks with Canmax.
On the modifications at the Zulu plant, it added that works are being completed and production projections guided in late May remain achievable according to its contractor and operator.
Write to Elena Vardon at [email protected]