Online Reporter
Nqobile Bhebhe Zimpapers Business Hub
Premier African Minerals Limited has received a critical financial lifeline following a key decision by Canmax Technologies Co., Ltd to convert nearly US$1 million worth of accrued interest into equity underscoring continued support for the Zimbabwe-focused mining operation amid ongoing funding constraints.
In a statement on Wednesday (today), the London-listed mining firm announced that Canmax has opted to convert £688,957.63 (approximately US$938,755.14) in accrued interest under the Restated and Amended Offtake and Prepayment Agreement into new ordinary shares in the Company.
This move is in line with the terms of the Addendum to the Agreement initially announced on 24 December 2024, and signals continued collaboration between the two entities.
“The Company has therefore issued today 5,741,313,598 new ordinary shares to the Investors (“Canmax Shares”) at an issue price of 0.012 pence per Canmax Share, being the same issue price as the direct subscription announced on 11 June 2025,” Premier said in a regulatory notice.
The Canmax Shares will rank pari passu in all respects with the existing ordinary shares. Application will be made for the Canmax Shares to be admitted to trading on AIM and admission is expected to take place on or around 8 July 2025.
The development boosts Premier’s capital structure at a time when additional liquidity is essential for its flagship Zulu Lithium and Tantalum Project in Fort Rixon.
The company is working to stabilise operations and build investor confidence after a series of technical and commercial delays in previous quarters.
“Following the issue of the Canmax Shares, the Company’s issued share capital consists of 76,008,109,313 Ordinary Shares, with voting rights,” Premier added.
“This figure may be used by shareholders in the Company as the denominator for the calculation by which they will determine if they are required to notify their interest in, or a change to their interest in, the share capital of the Company under the Financial Conduct Authority’s Disclosure and Transparency Rules.”
The support from Canmax, a key strategic offtake partner, is expected to offer breathing room as Premier seeks to transition from development to consistent production and explore new funding options to complete its optimisation initiatives.
The Zulu Lithium project, located near Fort Rixon in Matabeleland South Province, is seen as a potential game-changer for Zimbabwe’s lithium ambitions.
