Premier African Minerals Reaches Agreement with Canmax Technologies
Premier African Minerals announces an agreement with Canmax Technologies to resolve previous disputes and restore working arrangements.
Premier African Minerals announced that it has successfully reached an agreement to amend and restate an offtake and prepayment agreement with Canmax Technologies. This move aims to restore working arrangements between the two companies.
The recent development involves the withdrawal of force majeure and default notices by the respective parties. The agreement largely retains the essential terms of the previous deal made in August 2022.
However, some changes have been made to the revised agreement. These include adjustments to the product supply schedule, alternative arrangements for a $34.6 million prepayment and accrued interest, and a revised hybrid pricing agreement.
Premier African Minerals faced a setback in late June when the company failed to reach an agreement to amend the supply deal before the June 25th deadline. The proposed terms were not acceptable to the company at that time, resulting in a slump in their shares.
Furthermore, on June 28th, Premier received a notice of termination for the deal between the two companies at Premier's Zulu Lithium and Tantalum project in Zimbabwe due to force majeure. This termination required Premier to repay $34.7 million within 90 days. Disputing the grounds of termination based on legal advice, Premier African Minerals found themselves facing additional challenges.
As a result, the company experienced another drop in their shares in mid-July when they revealed that their cash reserves were constrained as a result of the dispute over the termination of the supply deal.
At 1245 GMT, Premier African Minerals' shares were down 0.03 pence, or 5%, at 0.57 pence.