Lithium firm inks US$35m deal with Chinese investor
PREMIER African Minerals limited, which is developing the Zulu lithium and tantalum projects near Bulawayo, has struck a US$35 million deal with China based Suzhou TA and A Ultra for the construction of a spodumene concentrate plant in Shangani.
According to the agreement, the venture aims to establish a large-scale pilot plant with an annual target production capacity of 50 000 tonnes of spodumene concentrate 6 (SC6) from the first quarter of 2023.
Spodumene concentrate 6 (SC6) is an important economic concentrate with a high-purity lithium ore containing approximately six percent lithium content, an important raw material for the production of lithium-ion batteries used to power electric vehicles.
Zulu Lithium is considered one of the largest undeveloped lithium-bearing pegmatites in Zimbabwe, located in Shangani 80km from Bulawayo, Zimbabwe’s second-largest city.
The plant is expected to utilise state of the art sensor-based ore sorting technologies that will help in the lithium mineral recovery.
According to Premier African Minerals, the construction activities at the Zulu lithium and tantalum project aim to have the first shipment of the commodity earlier than 31 March 2023.
The pilot plant facility would produce SC6 and three other by-products including tantalum concentrate, mica concentrate, and rubidium in the first phase.
“I am pleased to be able to confirm that Premier has concluded a binding heads of terms in respect of a marketing and pre-payment agreement for the Zulu Project, the prepayment is expected to fully fund the construction phase and is interest free provided the first shipment occurs by 31 March 2023.
“Suzhou TA&A has agreed to provide a pre-funding amount of US$34 644 385 (PrePayment Amount) to enable the construction and commissioning of a large-scale pilot plant at the Zulu Project. Upon the signing of the agreement, US$3 450 000 was made immediately to Premier to commission the securing of the pilot plant.
“The remaining balance of the Pre-Payment Amount will be paid in one lump sum following completion of the transaction documents,” said Premier African Minerals chief executive officer George Roach in a communiqué.
Under the agreement, Suzhou TA&A will have the right to acquire the first three years of production of SC6 until such time as the prepayment amount has been repaid in full.
Premier African Minerals Limited (AIM: PREM) is a multi-commodity mining and natural resource development company focused on Southern Africa with its RHA Tungsten and Zulu Lithium projects in Zimbabwe.
The Company has a diverse portfolio of projects, which include tungsten, rare earth elements, lithium, and tantalum in Zimbabwe and lithium and gold in Mozambique, encompassing brownfield projects with near-term production potential to grass-roots exploration.
Zimbabwe is targeting US$500 million from lithium mining activities by next year as the country seeks to grow mining to a US$12 billion mining industry by 2023.
According to the Minister of Mines and Mineral Development, Winston Chitando these are the expected earnings from the lithium projects that are established or currently taking shape in the country.
A 2016 geological survey revealed that Zimbabwe’s lithium deposits are second to none in Africa with known deposits that are located in Bikita, Goromonzi, and Kamativi.
Goromonzi houses the Arcadia mine which exchanged hands from the Australian Stock Exchange-listed Prospect Resources to Chinese company Zhejiang Huayou Cobalt Limited late last year.
Zhejiang Huayou Cobalt Limited acquired a controlling 87 percent stake in Arcadia mine through a US$422 million deal.-The Herald
