REG - Premier African Min - Offtake and Prepayment Agreement

Premier African MineralsAnnouncement

06/06/2023 11:15

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20230606:nRSF8109Ba&default-theme=true

RNS Number : 8109B  Premier African Minerals Limited  06 June 2023

6 June 2023

Premier African Minerals Limited

 

Offtake and Prepayment Agreement

 

Premier African Minerals Limited ("Premier" or the "Company"), is pleased to
provide an update on the Offtake and Prepayment Agreement ("Agreement")
entered into between Premier and Canmax Technologies Co., Ltd., formerly known
as Suzhou TA&A Ultra Clean Technology Co. Ltd, ("Canmax").

In accordance with the terms of the Agreement entered into on 3 August 2022,
Premier was required to supply product by 30 May 2023, Canmax now have the
right to terminate the Agreement by notice in writing to Premier and Premier
will need to enact repayment of the prepayment amount plus interest in full
within ninety (90) days of such termination notice.

Premier has been accruing interest at 3.5% per annum (subject to adjustment
from time to time in accordance with loan prime rate as published by the
People's Bank of China) to Canmax in accordance with the Agreement.

Canmax and Premier are in advanced discussions pertaining to an addendum to
the Agreement to allow for the following:

 Ø   Adjustment in the pricing mechanism whereby both parties will equally share in
     the gross revenue from the sale of Lithium Hydroxide produced from spodumene
     supplied by Premier, after deduction of the production costs of both parties.

 Ø   Further prepurchase of spodumene by Canmax from Zulu to assist with ongoing
     operational costs associated with the revised timelines and expected
     production figures as announced on the 25 May 2023.

Canmax have confirmed that their intention is to continue to support Premier
and not to terminate the Agreement providing that an addendum between the
parties is entered into on or before 25 June 2023.

 

George Roach, CEO commented, "I am deeply appreciative for the constructive
discussion, further assistance, and confirmation of our relationship with
Canmax ".

 

Related Party Transaction

 

Canmax is interested in 13.14 per cent. of the Company's issue share capital
and is therefore a related party under the AIM Rules and any addendum 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

 

Forward Looking Statements:

Certain statements in this announcement are or may be deemed to be forward
looking statements. Forward looking statements are identified by their use of
terms and phrases such as ''believe'' ''could'' "should" ''envisage''
''estimate'' ''intend'' ''may'' ''plan'' ''will'' or the negative of those
variations or comparable expressions including references to assumptions.
These forward-looking statements are not based on historical facts but rather
on the Directors' current expectations and assumptions regarding the Company's
future growth results of operations performance future capital and other
expenditures (including the amount. Nature and sources of funding thereof)
competitive advantages business prospects and opportunities. Such forward
looking statements reflect the Directors' current beliefs and assumptions and
are based on information currently available to the Directors. A number of
factors could cause actual results to differ materially from the results
discussed in the forward-looking statements including risks associated with
vulnerability to general economic and business conditions competition
environmental and other regulatory changes actions by governmental authorities
the availability of capital markets reliance on key personnel uninsured and
underinsured losses and other factors many of which are beyond the control of
the Company. Although any forward-looking statements contained in this
announcement are based upon what the Directors believe to be reasonable
assumptions. The Company cannot assure investors that actual results will be
consistent with such forward looking statements.

 

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

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  AGRUNRKROKUNRRR