Shares in Premier African Minerals Ltd (AIM:PREM, OTC:PRMMF) rose 23% to 0.043p on Monday after the company announced an extension to its offtake and prepayment agreement with Chinese partner Canmax Technologies, relating to the Zulu Lithium and Tantalum Project in Zimbabwe.
The updated deal gives Premier more time to meet the terms of its supply and funding arrangement, pushing the so-called Long Stop Date from 31 December 2025 to the earlier of 30 June 2026 or the point at which a new buyer acceptable to Canmax agrees to settle the outstanding prepayment.
The extension comes with a set of revised conditions. Among the changes, Premier will no longer be required to secure a non-binding expression of interest from a third-party buyer within 30 days of the agreement.
However, the company must keep its current management in place across both Premier and its Zulu subsidiary, and maintain the full security package previously outlined in December 2024.
If Premier fails to meet any of the agreed conditions, Canmax retains the right to enforce its full contractual powers under the amended deal.
Graham Hill, Premier’s managing director, said: “We are grateful for Canmax's continued support and collaboration, and the revised long stop date provides welcome clarity as we work together towards a successful outcome at Zulu.”
The agreement, originally signed in August 2023 and later revised twice, underpins the funding of the Zulu project, one of southern Africa’s more advanced lithium prospects.