Cadence Minerals Plc (LON:KDNC) has been granted more time to carry out its due diligence on the Zulu lithium and tantalum project in Zimbabwe.
Back in June, Cadence signed a conditional heads of terms agreement with Premier African Minerals PLC (LON:PREM) to acquire up to a 30% stake in Zulu for up to US$5.1mln.
READ: Cadence set to invest in Zulu
The plan is that the investment will fund the definitive feasibility study of the project, where a scoping study last year revealed a lithium concentrate net present value (NPV) of US$127mln and lithium carbonate NPV of US$718mln.
Before finalising the deal, Cadence wanted to carry out its due diligence on Zulu but the recent elections in Zimbabwe have caused some “unexpected interruptions” so Premier has granted Cadence an extra 20 days to cast its eye over the project.
The due diligence period is now due to run until September 14.