Online Reporter
Nqobile Bhebhe
Zimpapers Business Hub
Premier African Minerals is set to convene a crucial 2025 Annual General Meeting (AGM) on June 4, 2025, in South Africa, where shareholders will consider and approve strategic resolutions expected to significantly impact the future direction of the lithium-focused firm.
The London-listed junior is developing the Zulu Lithium near Bulawayo, considered to be potentially the largest undeveloped lithium-bearing pegmatite in Zimbabwe.
In a notice to shareholders issued on Monday, the company disclosed that one of the key resolutions to be tabled will seek shareholder approval for the disapplication of pre-emption rights for a period of 24 months following the AGM.
The disapplication relates to the issue or grant of rights to subscribe for or convert any security into up to 27 billion ordinary shares, as stipulated in Regulation 1,5 of the company’s Articles of Association.
Additionally, shareholders will be asked to authorise the board to issue or grant such rights in line with the resolution, including entering into agreements during the period that may require share allotments or conversions after the period ends.
Premier noted that these resolutions are critical to its ongoing operations and future funding strategy, particularly as the company continues to advance the Zulu Lithium and Tantalum Project.
On April 1, 2025, the lithium mining firm announced that it had reached a further amendment to the Restated Offtake and Prepayment Agreement with Canmax Technologies Co Ltd regarding the Zulu project.
The agreement, originally revised in August 2023 and again in December 2024, remains largely unchanged.
However, the Long Stop Date has been conditionally extended from April 1, 2025 to the earlier of either December 31, 2025 or upon securing a signed agreement with a reputable buyer acceptable to Canmax.
This buyer would be responsible for settling and/or managing Canmax’s prepayment amount and interest, under terms agreed by Canmax.
Further, on April 23, 2025, Premier entered into a non-binding letter of interest concerning a potential purchase of spodumene concentrate and the repayment or management of the prepayment amount, plus interest, owed under the Zulu Project.
“Premier further has agreed with Canmax Technologies Co, Ltd to use its best endeavours within a three-month period to have the letter issued as a binding agreement subject to pre-conditions inter alia that the plant achieves the required grade and tonnage (Plant Deliverables),” the company said.
“If Premier is able to meet the plant deliverables, it is essential that the company seek further approval for the disapplication of such number of shares to allow the company to meet certain immediately due payments and to complete the commissioning and optimisation of both the Primary Flotation Plant and Secondary Flotation Plant.”
The company indicated that the proposed use of funds includes a test-run period and supports completion of the secondary flotation plant acquisition.
“However, the budget does not deal with operating costs under normal production, after installation and commissioning of the Enprotech inserts that have been paid for and the secondary spodumene float plant,” Premier said.
“It’s also noted that the payment arrangements do not call for immediate payment of the amounts set out above, and no revenue allowance has been contemplated.”
The company added: “Similarly, the prospect of non-dilutive finance options remains when the plant is fully commissioned and operating to design specifications.”
The board emphasised that approval of the AGM resolutions is in the best interests of the company and its shareholders.
“Premier has limited funds and must put in place additional funding arrangements to meet its payment commitments and obligations due.
“Shareholders should be aware that if Resolutions 2 and 3 are not passed at the AGM, the company would need to proceed with alternative funding arrangements, including possibly a discounted open offer to shareholders, and there is no assurance that such open offer will be taken up or such other funding arrangements could be put in place in the timescale required on acceptable terms, which would potentially have a material adverse effect on Zulu and the financial position of the company as a whole,” the company said.
“As previously reported, if the company is unable to obtain additional finance for the group’s working capital requirements, a material uncertainty may exist which could cast significant doubt on the ability of the group to continue as a going concern and therefore be unable to realise its assets and settle its liabilities in the normal course of business.”
The board has therefore urged shareholders to vote in favour of the resolutions, reiterating their significance to Premier’s operational and financial stability.
Recently, the mining house expressed optimism about securing a supply deal with commodities giant Glencore Plc, which is crucial to salvaging its troubled Zulu lithium project and shoring up its balance sheet.
The London-listed miner announced that it had signed a non-binding letter of interest with Glencore for spodumene concentrate from its Zulu lithium/tantalum project.
A deal would be strategically important to address challenges around its mounting debt.
If successful, this could help Premier clear its US$35 million liability to Canmax Technologies, a shareholder in the group, and regain its footing in the fast-growing battery metals sector.
The potential deal includes assistance from Glencore, the world’s largest globally diversified natural resource company, in managing and repaying its debt obligation.
