ZULU lithium developer, Premier African Minerals Limited, and its strategic partner, Canmax Technologies, have agreed to extend the deadline for their amended offtake and prepayment arrangement under strict new conditions that tighten Canmax’s oversight of the deal.
The offtake agreement between Premier and Canmax Technologies is a comprehensive offtake and prepayment agreement for spodumene concentrate from Premier’s Zulu Lithium and Tantalum project in Zimbabwe.
The terms have been amended several times due to production delays, but the core elements involve a significant prepayment by Canmax in exchange for product, a specific pricing and profit-sharing mechanism and stringent security clauses in case of default.
Zulu Lithium is strategically vital for Zimbabwe as it taps into the global green energy boom, positioning the nation as a key supplier of battery-grade lithium for EVs and energy storage, driving economic growth, attracting foreign investment, creating jobs and boosting export earnings, helping Zimbabwe’s ambition to become a major player in the clean energy supply chain and achieve middle-income status.
Mining, in general, is critically important to Zimbabwe, serving as a backbone for foreign currency, exports, and government revenue, anchoring its economy and driving towards middle-income status, with key minerals like platinum, gold and lithium, and accounting for over 12 percent of the country’s gross domestic product.
In a trade update released on Monday, Premier said the Long Stop Date (deadline) had been extended from December 31, 2025, to June 30, 2026, subject to compliance with revised requirements imposed by Canmax.
The extension will apply until the earlier of June 30, 2026, or the date on which a reputable buyer acceptable to Canmax executes a binding agreement to settle and/or manage Canmax’s prepayment amount plus interest, on terms to be agreed by Canmax.
Premier said the terms of the amended agreement “remain unchanged from the previously Restated Offtake and Prepayment Agreement, save that the Parties have agreed, subject to certain conditions, to extend the Long Stop Date.”
The conditions for the Long Stop Adjustment largely remain consistent with those announced on1, April 2025, but now include amended and more stringent requirements designed to protect Canmax’s position.
According to the update, one of the conditions relates to the procurement of a buyer’s interest.
“The requirement for Premier to procure a non-binding expression of interest from a reputable buyer acceptable to Canmax within 30 days of the signing of the addendum (unless otherwise extended by Canmax) has been removed,” Premier said.
However, Canmax has placed tighter governance controls, including restrictions on changes in leadership.
“The current office bearers of both Premier and Zulu Lithium Private Limited shall not resign, be removed, or otherwise cease to hold office until the end of the Long Stop Adjustment without the prior written consent of Canmax,” reads the update.
Premier is also required to maintain all previously agreed security arrangements.
“Premier will maintain the security package previously announced on December 24, 2024 in full force and effect and will furnish any additional documentation reasonably required to preserve its validity,” the company said.
The update further warns that any breach of the conditions could trigger immediate action by Canmax.
“To the extent that any of the above conditions, including those already in place, are not met and/or adhered to by Premier, Canmax will retain the right to immediately exercise all of its rights, powers and discretions under the amended agreement,” reads part of the statement.
Premier managing director Mr Graham Hill welcomed the extension, saying it provided certainty as work continues at the company’s flagship lithium asset.
“We are grateful for Canmax’s continued support and collaboration, and the revised long stop date provides welcome clarity as we work together towards a successful outcome at Zulu,” he said.
The Zulu Lithium Project, located near Fort Rixon in Matabeleland South Province, is regarded as a potential game-changer for Zimbabwe’s lithium ambitions.
The relationship between Premier and Canmax dates back to August 2022, when the two companies entered into a prepayment and offtake agreement valued at approximately US$34,7 million.
Under the arrangement, Canmax agreed to fund the construction and commissioning of Premier’s Zulu Lithium and Tantalum Project in return for exclusive offtake rights to spodumene concentrate produced at the mine.
However, commissioning delays and plant performance challenges experienced in 2023 strained the partnership, resulting in Canmax issuing notices of default.
Following prolonged negotiations, the parties reached a settlement and restructuring agreement in December 2024, which included provisions allowing Canmax to convert accrued interest into equity.
The latest addendum is viewed as a key step in stabilising the partnership, reaffirming Canmax’s commitment to the Zulu project while granting Premier additional time and financial flexibility to optimise plant performance and progress towards commercial production.
By opting to convert interest into equity rather than demanding immediate cash repayment, Canmax has signalled continued confidence in Premier African Minerals’ long-term prospects and in the strategic importance of the Zulu Lithium and Tantalum Project.
By opting to convert interest into equity rather than demanding immediate cash repayment, Canmax has signalled continued confidence in Premier African Minerals’ long-term prospects-herald
