Online Reporter
Oliver Kazunga
Senior Reporter
CHINESE strategic investor Canmax Technologies has reinforced its long-term commitment to Premier African Minerals by converting more than US$628 000 in accrued interest into equity, a move that strengthens the company’s balance sheet as it continues to optimise operations at the Zulu Lithium and Tantalum Project in Matabeleland South.
Premier African Minerals announced today that Canmax had exercised its right under the Restated and Amended Offtake and Prepayment Agreement to convert accrued interest into new ordinary shares.
The conversion, made in accordance with the Addendum to the agreement signed on December 24, 2024, covers accrued interest amounting to US$628 702.
“In aggregate, Canmax has elected to convert US$628 702,23 of accrued interest (equivalent to £466 158) into 2 770 506 833 new ordinary shares in the company (Canmax shares).
“The Canmax shares have been issued at an average issue price of 0,016826 pence per Canmax share, calculated by reference to the applicable issue prices for each relevant funding,” said Premier in a statement.
In return, Premier has issued 2 770 506 833 new ordinary shares to Canmax at an average issue price of 0,016826 pence per share.
The transaction relates to four separate funding rounds announced by Premier since April 28 this year.
Under the terms of the agreement, Canmax has the discretion to receive partial repayment of accrued interest through the issuance of new shares, enabling it to maintain a 13,38 percent fully diluted shareholding in Premier immediately following each funding round.
The latest conversion reduces the immediate cash burden on Premier while preserving funding for operational priorities at the Zulu Lithium and Tantalum Project, one of Zimbabwe’s flagship lithium developments.
The debt-to-equity conversion also signals Canmax’s continued confidence in the long-term prospects of the project despite the operational challenges that have accompanied the commissioning and optimisation of the processing plant.
The latest equity conversion by Canmax is expected to further cement the partnership between the two companies while providing Premier with additional financial flexibility as it works towards achieving stable production at the Zulu Lithium and Tantalum Project.
Premier has in recent months undertaken several capital-raising initiatives aimed at improving plant performance, enhancing recoveries and accelerating commercial production.
Previous company updates have indicated that the additional funding is being channelled towards plant optimisation, working capital requirements and settling obligations with contractors.
Of late, Premier has been implementing technical modifications to improve spodumene recovery while also exploring opportunities to recover additional minerals such as tantalum, a strategy expected to diversify revenue streams and strengthen the project’s long-term viability.
Meanwhile, Zimbabwe continues to position lithium as a strategic mineral underpinning the country’s mining-led economic growth strategy, with the Government encouraging value addition and beneficiation, as well as increased investment across the battery minerals value chain.
