Premier African Minerals Limited (AIM: PREM) has agreed with Canmax Technologies to extend the Long Stop Date under its existing Offtake and Prepayment Agreement for the Zulu Lithium and Tantalum Project to 31 December 2026.
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The extension gives Premier additional time to progress Zulu and seek a longer-term resolution of its financial arrangements with Canmax, which remains the company’s principal secured creditor.
Premier, Zulu Lithium and Canmax have also entered into a new subordination agreement which gives Canmax contractual priority over amounts owed by Zulu Lithium to Premier and other group companies.
As at 10 September 2026, Canmax was owed US$48.73 million, comprising around US$34.64 million of original advanced receipts and US$14.08 million of accrued interest.
Zulu Lithium also owes approximately US$55.75 million to Premier and other Premier Group companies. These amounts remain fully owing, but cannot be repaid or enforced while Canmax’s senior debt remains outstanding without Canmax’s consent.
Premier can continue to provide additional funding to Zulu if required, although any further advances would also rank behind Canmax.
Managing Director Graham Hill said the extension provides additional time and certainty while Premier continues to progress Zulu and work towards a longer-term resolution with Canmax.
Canmax holds more than 10% of Premier’s shares, meaning the agreement is treated as a related party transaction under AIM rules.
The extension provides Premier with more breathing space, but does not reduce the underlying US$48.73 million owed to Canmax, while Premier’s own substantial advances to Zulu remain subordinated.
