UK lithium developer, offtaker extend supply contract deadline

Nqobile Bhebhe-Zimpapers Business Hub

ZULU lithium developer, Premier African Minerals Limited, and its strategic partner, Canmax Technologies, have agreed to extend the deadline for their amended offtake and prepayment arrangement under strict new conditions that tighten Canmax’s oversight of the deal.

The offtake agreement between Premier and Canmax Technologies is a comprehensive offtake and prepayment agreement for spodumene concentrate from Premier’s Zulu Lithium and Tantalum project in Zimbabwe.

The terms have been amended several times due to production delays, but the core elements involve a significant prepayment by Canmax in exchange for product, a specific pricing and profit-sharing mechanism and stringent security clauses in case of default.

Zulu Lithium is strategically vital for Zimbabwe as it taps into the global green energy boom, positioning the nation as a key supplier of battery-grade lithium for EVs and energy storage, driving economic growth, attracting foreign investment, creating jobs and boosting export earnings, helping Zimbabwe’s ambition to become a major player in the clean energy supply chain and achieve middle-income status.

Mining, in general, is critically important to Zimbabwe, serving as a backbone for foreign currency, exports, and government revenue, anchoring its economy and driving towards middle-income status, with key minerals like platinum, gold and lithium, and accounting for over 12 percent of the country’s gross domestic product.

In a trade update released on Monday, Premier said the Long Stop Date (deadline) had been extended from December 31, 2025, to June 30, 2026, subject to compliance with revised requirements imposed by Canmax.

The extension will apply until the earlier of June 30, 2026, or the date on which a reputable buyer acceptable to Canmax executes a binding agreement to settle and/or manage Canmax’s prepayment amount plus interest, on terms to be agreed by Canmax.

Premier said the terms of the amended agreement “remain unchanged from the previously Restated Offtake and Prepayment Agreement, save that the Parties have agreed, subject to certain conditions, to extend the Long Stop Date.”

The conditions for the Long Stop Adjustment largely remain consistent with those announced on1, April 2025, but now include amended and more stringent requirements designed to protect Canmax’s position.

According to the update, one of the conditions relates to the procurement of a buyer’s interest.

“The requirement for Premier to procure a non-binding expression of interest from a reputable buyer acceptable to Canmax within 30 days of the signing of the addendum (unless otherwise extended by Canmax) has been removed,” Premier said.

However, Canmax has placed tighter governance controls, including restrictions on changes in leadership.

“The current office bearers of both Premier and Zulu Lithium Private Limited shall not resign, be removed, or otherwise cease to hold office until the end of the Long Stop Adjustment without the prior written consent of Canmax,” reads the update.