Premier re-elects George Roach as director

ZULU Lithium investor Premier African Minerals’ chief executive officer, Mr George Roach, has been re-elected as a director of the mining entity.

He retained his post during the annual general meeting in Midrand, South Africa on Monday.

Two items were on the agenda, to retain Mr Roach who is retiring by rotation, as a director or vote against that.

The other item was by way of a special resolution in which shareholders were to vote for or against authority to disapply pre-emption rights. Shareholders voted against granting authority to disapply pre-emption rights.

“Accordingly, George Roach has been re-appointed as a director. As announced earlier today, Premier has the general authority to issue shares on a pre-emptive basis such as an open offer or rights issue,” reads a brief from the AGM voting results.

At the AGM, the mining entity was seeking inter alia, shareholder approval for the disapplication of pre-emption for an issue of shares for cash.

“Shareholders should note that whether or not the enabling resolution is passed at the AGM, Premier has, in any event, the general authority to issue shares on a pre-emptive basis such as an open offer or rights issue,” said the company.

“In these circumstances, and if Premier remained unable to resolve the status with Canmax and /or no other party concludes any further offtake agreement on terms considered fair and reasonable to Premier shareholders as a whole, then the board consider that alternative funding options remain available to Premier,” it said in a statement before the AGM on Monday.

On Sunday, the mining and natural resource development company, issued a force majeure notice to China’s Canmax Technologies citing unforeseen operational hurdles encountered at its Zulu Lithium plant in Fort Rixon, Matabeleland South province.

Force majeure is a common clause in contracts that essentially frees both parties from liability or obligation when an extraordinary event or circumstance is beyond the control of the parties.

The plant, which recently commenced production of spodumene concentrate is not able to produce sufficient spodumene to meet the conditions of its off-take agreement with Canmax.

Last year, Canmax provided US$35 million in pre-funding to enable the construction and commissioning of a large-scale pilot plant. Its chairman Mr Pei Zenzhue had his first visit to the site last year.

In an off-take and Prepayment Agreement update on Monday, Premier said it expects to publish the audited annual financial statements for the year ended December 2022 on or before 30 June 2023.

It said the implications of the force majeure notice and status of discussions with Canmax will be further reviewed with the company’s auditors.

“Should there be any change to the current timeline, and in particular any possible delay to publication beyond 30 June 2023, an immediate notification would be made at that point shareholders should note that pursuant to AIM Rule 40, should publication of the account be delayed beyond 30 June 2023, the exchange would suspend trading in the company’s shares with effect from 07.30 on 3 July 2023.”

Due to the delays at the plant, Mr Roach has expressed frustration emanating from unforeseen challenges faced by the main plant contractor responsible for the design and construction of the plant, Stark Resources.

“Whilst I am deeply upset and committed to finding an equitable way forward with Canmax, that solution should strive to be fair and reasonable and in the best interests of all Premier shareholders as a whole.

“Whilst my focus is squarely on a resolution of the plant issues during this period of FM (Force Majeure) and production at Zulu, I will diligently strive to resolve the issues with Canmax and will actively pursue alternative strategies.”