Harare — Premier African Minerals Limited and its strategic partner, Canmax Technologies, have extended the deadline for their amended offtake and prepayment agreement for the Zulu Lithium and Tantalum Project to June 30, 2026, under revised terms that strengthen Canmax’s control and oversight of the arrangement.
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Book NowPremier said in a trade update that the Long Stop Date has been moved from December 31, 2025, to the end of June 2026, subject to strict compliance with new and existing conditions designed to safeguard Canmax’s prepayment exposure.
The offtake agreement covers the supply of spodumene concentrate from the Zulu Lithium and Tantalum Project in Matabeleland South and includes a significant upfront prepayment by Canmax, a defined pricing and profit-sharing structure, and extensive security provisions in the event of default. The deal has been amended several times as the project faced commissioning delays and plant performance challenges.
Under the latest addendum, the extension will apply until June 30, 2026, or earlier if a reputable buyer acceptable to Canmax signs a binding agreement to settle or manage Canmax’s prepayment amount, including accrued interest, on terms approved by Canmax.
Premier said the core commercial terms of the Restated Offtake and Prepayment Agreement remain unchanged, with the latest amendment focused solely on extending the Long Stop Date and reinforcing compliance requirements.
While the obligation for Premier to secure a non-binding expression of interest from a third-party buyer within 30 days has been removed, Canmax has imposed tighter governance controls. Current directors and senior office bearers at both Premier and Zulu Lithium Private Limited are barred from resigning or being removed during the extension period without Canmax’s prior written consent.
The company must also maintain all existing security arrangements in full force and effect and provide any additional documentation required to preserve their validity. Any breach of the conditions would allow Canmax to immediately exercise its rights and remedies under the amended agreement.
Premier managing director Graham Hill said the extension provides clarity and stability as work continues at the Zulu project, which is regarded as a key asset in Zimbabwe’s fast-growing lithium sector.
The Zulu Lithium and Tantalum Project, located near Fort Rixon, is seen as strategically important to Zimbabwe’s ambitions to position itself as a major supplier of battery-grade lithium for electric vehicles and energy storage, as the country leverages its mineral endowment to drive exports, foreign investment and economic growth.
The Premier–Canmax partnership dates back to August 2022, when Canmax agreed to provide about US$34.7 million in prepayment funding in exchange for exclusive offtake rights. After commissioning delays in 2023 led to default notices, the parties restructured the agreement in December 2024, including provisions allowing Canmax to convert accrued interest into equity.
Analysts say the latest extension is aimed at stabilising the relationship, giving Premier additional time to optimise plant performance and progress toward commercial production, while reinforcing Canmax’s position as Zimbabwe’s lithium sector remains central to the country’s mining-led growth strategy.
