Online Reporter
Rutendo Nyeve
PREMIER African Minerals Limited has reached a settlement with J R Goddard Contracting (Private) Limited, ending a high-stakes dispute over a US$2,4 million debt that had threatened operations at the flagship Zulu Lithium and Tantalum Project in Insiza District.
The agreement, announced in a corporate update on Monday, follows the issuance of a writ of execution for movable property on December 23, 2025, against Premier’s subsidiary, Zulu Lithium (Private) Limited.
The dispute’s origins trace back to a commercial debt owed by Premier’s project subsidiary to the Bulawayo-based contractor, J R Goddard.
Following unsuccessful recovery efforts, JRG escalated the matter through the courts, culminating in a significant legal victory.
This judicial process granted JRG an enforcement tool known as a Writ of Execution for Movable Property.
The writ had authorised J R Goddard to seize and auction movable assets at the Zulu project to recover the outstanding amount, placing the mine’s short-term operations under serious risk.
Specifically, a writ for movable property empowers a court-appointed officer, such as a messenger or sheriff, to identify, seize and publicly auction the debtor company’s movable assets.
These can include critical operational equipment, vehicles, machinery, generators, and processing tools essential for day-to-day mining activities.
The issuance of such a writ against Zulu Lithium on December 23 last year, represented a severe escalation, posing an existential threat to the project’s operational continuity and Premier’s ability to attract further investment.
Faced with the prospect of having its vital project assets catalogued and sold, Premier engaged in intensive negotiations with JRG.
Under the settlement, Premier and Zulu Lithium will settle the full claim, including accrued interest, through a structured payment plan. An initial payment of US$400 000 is due by January 30, 2026, followed by monthly instalments extending to November 2026.
In terms of the agreement, J R Goddard has undertaken to suspend all enforcement actions, provided Premier complies fully with the agreed payment schedule.
Premier African Minerals chairman Mr Godfrey Manhambara said the settlement marked a positive turning point for the company.
“The board of Premier is pleased to confirm JRG’s agreement to stay execution and views the settlement agreement as a highly positive outcome, providing future certainty and enabling the company to progress its funding and operational initiatives at Zulu Lithium,” he said.
The settlement removes a major legal and operational overhang, allowing Premier to refocus on advancing the strategically important lithium project.
However, the company noted that the agreement constitutes a forbearance arrangement, with J R Goddard’s original legal rights remaining in force until the full settlement amount is paid.
The resolution is expected to stabilise operations at the Zulu Lithium and Tantalum Project and restore investor confidence in one of Zimbabwe’s most promising lithium ventures.
The settlement removes a major cloud of uncertainty that had loomed over the project, potentially deterring investors and partners.
It allows Premier’s management to refocus on its core mandate: advancing the development and scaling up of production at Zulu.
However, the agreement offers a reprieve, not a pardon.
“The arrangement constitutes a forbearance arrangement only and does not represent a novation or waiver of JRG’s existing rights until the settlement amount has been paid in full,” reads the update.
This legal nuance means JRG’s right to enforce the original writ remains in abeyance, not extinguished.
Any default on the new payment schedule could swiftly reactivate the enforcement process.
derick.khumalo