Chronicle Editor
Senior Business Reporter
PREMIER African Minerals Limited, which is developing the Zulu Lithium and Tantalum Project in Insiza District, Matabeleland South province, has secured US$35 million pre-funding to enable the construction and commissioning of a large-scale pilot plant at the project.
Upon the signing of the agreement, US$3,450,000 has been availed to Premier to secure the pilot plant, Premier African Minerals said in a latest update.
Suzhou TA&A Ultra Clean Technology company, a China-based company principally engaged in the research, development, production, and sale of anti-static ultra-clean products provided the funding.
The funds will allow Premier to establish a large-scale pilot plant at Zulu Lithium and Tantalum Project.
Group chief executive officer, Mr George Roach, said the net effect of the agreement is the immediate commencement of construction activities at the Zulu Project.
“I am pleased to be able to confirm that after our RNS of 13 June 2022, Premier has concluded a binding Heads of Terms in respect of a Marketing and Pre-Payment Agreement for the Zulu Project,” he said.
The mining firm says the pre-payment is expected to fully fund the construction phase and is interest-free provided first shipment occurs by 31 March next year.
According to the pre-payment agreement, Suzhou TA&A agreed to provide a pre-funding totalling $34,644,385 with the balance to be paid in one lump sum following completion of the transaction documents.
“Both Premier and Suzhou TA&A have agreed to use their best endeavours to complete the definitive transaction documents within one month of the Agreement failing which on written notice by Suzhou TA&A, Premier will be required to immediately refund the amount of US$3,450,000 to Suzhou TA&A from existing funds held by Premier,” added the statement.
The update further noted that if the supply commencement date does not occur by 31 March 2023 or there is a substantive delay in the subsequent supply of SC6, then Premier shall pay interest to Suzhou TA&A at a reasonable interest rate that represents Suzhou TA&A’s actual funding cost for the delay.
“If the supply commencement date does not occur on or before 30 May 2023, then Suzhou TA&A may terminate and seek repayment of the Pre-Payment Amount.
“Zulu and Zulu Lithium has the right to repay the pre-payment amount at any point,” said the company.
The group has a diverse portfolio of projects, which include tungsten, rare earth elements, lithium and tantalum in Zimbabwe and lithium and gold in Mozambique, encompassing brownfield projects with near-term production potential to grass-roots exploration.
Premier African Minerals Limited is a multi-commodity mining and natural resource development company focused on Southern Africa with its RHA tungsten and Zulu lithium projects in Zimbabwe.
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