Premier African Minerals Limited (LON:PREM) has terminated discussions with KME Plant Hire over a long form drilling contract for its Zulu Lithium project in Zimbabwe.
The AIM-listed firm said the two parties had been unable to conclude a revised pricing structure for the drilling that was commercially acceptable to both, and as a result it had terminated discussions with KME and would urgently reopen negotiations with a previous contractor with a view to recommencing drilling activities at the project.
The company said it believed discussions with the previous contractor should expedite the process due to its familiarity with the project.
Premier African added that it had cancelled the 212mln shares it had issued to KME as a pre-payment for the mobilisation and drilling and expected the shares to be cancelled on AIM by 4 June.
In mid-afternoon trading on Tuesday, Premier African shares were down 7% at 0.08p.