REG - Premier African Min - Offtake and Prepayment Agreement Update

Premier African MineralsAnnouncement

28/06/2023 16:45

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RNS Number : 2831E  Premier African Minerals Limited  28 June 2023

28 June 2023

Premier African Minerals Limited

 

Offtake and Prepayment Agreement Update

 

Premier African Minerals Limited ("Premier" or the "Company"), provides a
further update on the Offtake and Prepayment Agreement ("Agreement") entered
into between Premier and Canmax Technologies Co., Ltd. ("Canmax") for
spodumene concentrate produced at Zulu Lithium and Tantalum Project ("Zulu").

Premier confirms that it has today received a purported notice of termination
of the Agreement ("Notice of Termination") from Canmax following Premier's
service of a Notice of Force Majeure on Canmax on 25 June 2023 as announced on
26 June 2023.

Shareholders are reminded that the immediate effect of the Force Majeure
("FM") is the suspension of Premier's obligations under the Agreement and
Canmax's right to terminate.

At this stage, whilst Canmax may dispute the grounds for declaration of the FM
and are yet to provide formal communication to that effect, as such, Premier
has been advised that the Notice of Termination, which requires inter alia the
repayment by Premier of the Prepayment Amount of approximately US$34.6m (plus
interest as applicable) within 90 days of today's date, cannot be served at
this time.

George Roach, CEO commented, "The Company has been advised that this notice of
termination has no force or effect. Premier has repeatedly extended an
invitation to Canmax to attempt to resolve this situation as set out in the
Agreement, and does so again, now, and publicly".

Related Party

As Canmax is interested in 13.14 per cent. of the Company's issued share
capital and therefore a related party under the AIM Rules, any amendments to
the Agreement will be dealt with in accordance with AIM Rule 13.

MAR (Market Abuse Regulation)

 

The information contained within this announcement is deemed by the Company to
constitute inside information as stipulated under the Market Abuse Regulations
(EU) No. 596/2014 as it forms part of UK Domestic Law by virtue of the
European Union (Withdrawal) Act 2018.

 

The person who arranged the release of this announcement on behalf of the
Company was George Roach.

 

Enquiries:

 

 George Roach                        Premier African Minerals Limited    Tel: +27 (0) 100 201 281
 Michael Cornish / Roland Cornish    Beaumont Cornish Limited            Tel: +44 (0) 20 7628 3396

                                     (Nominated Adviser)
 Douglas Crippen                     CMC Markets UK Plc                  Tel: +44 (0) 20 3003 8632
 John More/Toby Gibbs                Shore Capital Stockbrokers Limited  Tel: +44 (0) 20 7408 4090

 

Notes to Editors:

Premier African Minerals Limited (AIM: PREM) is a multi-commodity mining and
natural resource development company focused on Southern Africa with its RHA
Tungsten and Zulu Lithium projects in Zimbabwe.

 

The Company has a diverse portfolio of projects, which include tungsten, rare
earth elements, lithium and tantalum in Zimbabwe and lithium and gold in
Mozambique, encompassing brownfield projects with near-term production
potential to grass-roots exploration. The Company has accepted a share offer
by Vortex Limited ("Vortex") for the exchange of Premier's entire 4.8%
interest in Circum Minerals Limited ("Circum"), the owners of the Danakil
Potash Project in Ethiopia, for a 13.1% interest in the enlarged share capital
of Vortex. Vortex has an interest of 36.7% in Circum.

 

In addition, the Company holds a 19% interest in MN Holdings Limited, the
operator of the Otjozondu Manganese Mining Project in Namibia.

 
Ends

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