Business
Offtake and Prepayment Agreement Update
Offtake and Prepayment Agreement Update.
About this update from Premier African Minerals Ltd.
[{"type":"text","content":"\n\n20 July 2023\nPremier African Minerals Limited\n \nOfftake and Prepayment Agreement Update\n \nZulu Update\n \nPremier African Minerals Limited (\"Premier\" or the \"Company\"), provides a further update on both the progress at the Zulu Lithium and Tantalum Project (\"Zulu\") and the Offtake and Prepayment Agreement (\"Agreement\") entered into between Premier and Canmax Technologies Co., Ltd (\"Canmax\") as announced on 6 June 2023.\nOfftake and Prepayment Agreement\nOn 28 June 2023, the Company received a purported notice of termination of the Agreement from Canmax (following service of a Force Majeure Notice on Canmax on the 25 June 2023) which demanded the Company settle the prepayment amount of US$34.7m within 90 days. The Company has disputed the appropriateness of the notice of termination based on legal advice.\nSubsequently, the Company has received, and acknowledged, a further written notice from Canmax on 17 July 2023 that there is a dispute under the Agreement and notes that both parties are now required to seek to resolve the dispute in good faith by \"friendly negotiation\". To the extent that the parties are unable to resolve the dispute in 10 days, then either party may then refer the dispute to arbitration in Singapore. These discussions remain ongoing and nothing has been agreed at this time.\nZulu plant modification update\nIn regard to plant modification progress at Zulu, the past three weeks have now seen the installation of the UV sorters, a new frame to the EDS mill and the Hydro Sizer (collectively the \"Upgrades\"). The commissioning of the Upgrades remains ongoing with the UV Sorters expected to increase feed grade with resultant efficiency enhancements to recovery and production; furthermore, the Hydro Sizer is expected to improve efficiency in recovery of correctly sized milled ore.\nWhilst the above Upgrades may improve throughput of the plant at Zulu, it is unlikely to resolve the formal state of Force Majeure as announced on the 26 June 2023, that is still expected to endure for approximately 14 weeks.\nThe Zulu design, procurement, installation, and commissioning contractor, Stark International Projects Limited (\"Stark\"), have confirmed that they intend to produce spodumene from the plant at Zulu over the course of July 2023. At this stage and unless Premier is advised otherwi...