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Cadence Minerals and Premier African unable to reach agreement on final terms of Zulu investment

A conditional agreement reached back in June would have seen Cadence invest up to US$5.1mln in Premier’s Zulu lithium project, but the two firms have not been able to finalise the deal
lithium
Premier will detail alternative development strategies at Zulu over the coming weeks

Cadence Minerals Plc (LON:KDNC) has opted not to press ahead with its planned investment in Premier African Minerals Ltd’s (LON:PREM) Zulu lithium project.

At the end of June, the two parties agreed in principle for Cadence to take up to a 30% stake in Zulu Lithium Mauritius Limited (Mauco), a wholly-owned subsidiary of Premier African, for up to US$5.1mln.

READ: Premier grants Cadence 20-day due diligence extension

The plan was that the investment would fund a definitive feasibility study of the project, where a scoping study revealed a lithium concentrate net present value (NPV) of US$127mln and lithium carbonate NPV of US$718mln last year.

As with any deal, Cadence carried out its due diligence, which it had to extend due to “unexpected interruptions” as a result of the elections in Zimbabwe.

But Cadence confirmed today (Monday) it had been unable to agree to final terms on the deal with Premier, which will provide a further update on alternative strategies for the development of Zulu over “the coming weeks”.

Premier African shares fell 22.2% to 0.14p, while Cadence dipped 0.8% to 0.18p.

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