Premier African Minerals edged 11% higher to 0.7p after it said it is in advanced discussions to add additional material to its offtake and prepayment agreement with Canmax Technologies.
Canmax, which manufactures and sells new energy materials, also confirmed it has no intention to back out of the existing arrangement.
According to a statement from the mining company, the two are close to agreeing on an arrangement whereby both parties will equally share revenues from the sale of lithium hydroxide produced from spodumene supplied by Premier.
They are also edging towards an agreement where Canmax will further prepurchase spodumene from the company’s Zulu project in Zimbabwe to assist with ongoing operational costs associated with the revised timelines and expected production figures.
Last August, the two entered an agreement whereby Premier was required to supply product by 30 May 2023, otherwise Canmax had the right to terminate by notice in writing to Premier.
"I am deeply appreciative for the constructive discussion, further assistance, and confirmation of our relationship with Canmax,” said CEO of Premier George Roach.