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(PREM) Premier African Minerals Share Chat

Discussion in 'General Share Chat (PREM)' started by rodrod1, Feb 24, 2016.

  1. Groucho

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  2. Groucho

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  4. Groucho

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    13 June 2022

    Premier African Minerals Limited


    Premier African Minerals Limited ("Premier" or the "Company"), is pleased to provide this interim update regarding progress and potential alternative proposal for early production at Premier's Zulu Lithium and Tantalum Project ("Zulu").


    George Roach, CEO commented," Since acceptance of the subscription by Suzhou TA&A Ultra Clean Technology Co., Ltd ("Suzhou TA&A") set out in our RNS in March this year, and pursuant to receipt of results from initial phases of test work undertaken on ore sorting by Anzaplan in association with Stark, it is clear that a potential opportunity exists for Zulu to be brought into early production based on a large-scale pilot plant using ore sorting technology to concentrate spodumene rich ore from other lithium minerals and gangue material before milling and floatation to produce a spodumene concentrate only and stock pile both a tantalum-rich fraction and petalite for future processing. Based on this plan, it is possible that such a plant could be in production in Q1 2023, funded under an interest free prepurchase payment for spodumene concentrate to be supplied. Shareholders should note that no funding has yet been arranged for this possible pilot plant and amongst many aspects of this whole concept still under scrutiny, this will still require completion.

    It is worth noting that the current demand for spodumene and the resultant prices, significantly de-risk this concept and support Premier's recent focus in terms of both our drilling programme at Zulu that is now exclusively targeting high grade spodumene zones within the ore body at an indicated resource level, and on aspects of the DFS in relation to implementation of the pilot plant. Importantly, operation of the pilot plant will fine tune aspects of the process that will support the DFS. Further details will be provided in due course along with details of any finance arrangements, together with illustrative valuation and revenue projections for the pilot plant.

    To date a total of 18,000 meters has been drilled at Zulu, and after a complete revision of QA/QC procedures and all aspects of sample preparation and analysis, assay testing and results are now continuing and the Company will publish highlights and significant assay results in due course when these are available.

    In closing, I remind shareholders that Premier is potentially following an accelerated programme of early production to exploit the current opportunity. There are identified risks and abatements inherent in this to a greater extent than may be the case following a fully developed DFS. However, the potential immediate availability of prepurchase payment and existing Spodumene price and demand are important and strong motivators in potentially pursuing this option".
     
  5. Groucho

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    24 June 2022

    Premier African Minerals Limited


    Zulu Lithium Project Pilot Plant

    Premier African Minerals Limited ("Premier" or the "Company"), is pleased to announce that it has entered into a Marketing and Prepayment agreement in the form of a binding Heads of Terms with Suzhou TA&A Ultra Clean Technology Co., Ltd ("Suzhou TA&A") that will allow Premier to establish a large-scale pilot plant at Zulu Lithium and Tantalum Project ("Zulu Project") to produce SC6 from Q1 2023 ("Agreement").


    Highlights

    · Target annual production from pilot plant of 50,000-ton SC6

    · Take-off for target production committed to Suzhou TA&A

    · Pre-purchase of production pays complete US$35 million construction cost

    · Minimum price undertaking for first 50,000-ton production underwrites repayment capability


    George Roach, CEO commented," 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. Whilst full detail is set out below, the net effect of this is the immediate commencement of construction activities at the Zulu Project intended to see first shipments before 31 March 2023 and a steady build up in production to circa 48,000 ton of SC6 per annum.

    It is important to note that this is a pilot plant facility and will produce SC6 only in the first phase. Three by-product streams will be stock-piled and will go to inventory, pending completion of additional test-work and additional plant. These products are a tantalum concentrate in a magnetic fraction, a petalite rich mixed ore and a mica/lepidolite concentrate that is likely to contain Caesium and Rubidium. That this may be immediately saleable remains a possibility.

    The prepayment is expected to fully fund the construction phase and is interest free provided first shipment occur by 31 March 2023. At present SC6 pricing, the pre-payment is expected to be fully liquidated inside of twelve months."

    The Pilot Plant

    The pilot plant to be commissioned will utilise state of the art sensor-based ore sorting technologies that will facilitate the separation of run of mine material into components and in so doing, likely increase available capacity in the flotation recovery circuits, where lithium minerals are recovered. Ultimate production and recoveries are a factor of many variables, and the pilot plant is likely to assist in dealing with these variables due to the inherent flexibility of the use of multiple ore sorters. Stockpiles of tantalum, petalite and Mica/lepidolite rich material will facilitate further test work and flow sheet development to ensure that this material is truly inventory for later profitable recovery.

    The pilot plant has a nameplate through put of up to 190 ton per hour, however it is planned to run at a more conservative 140 ton per hour at inception. At this rate and based on a 3-year life of the pilot plant operations only, excluding plant upgrades, tantalum recovery, petalite production and any other revenue, a series of sensitivities indicate a robust project and an assurance that Premier will become cash generative from the time of first shipment.

    Terms of the Proposed Marketing and Pre-Payment Agreement ("Agreement")

    Pre-Payment Agreement

    Suzhou TA&A have agreed to provide a pre-funding amount US$34,644,385 ("Pre-Payment Amount") to enable the construction and commissioning of a large-scale pilot plant at the Zulu Project. Upon the signing of the Agreement, US$3,450,000 has been made immediately to Premier to commission the securing of the pilot plant. The remaining balance of the Pre-Payment Amount will 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.

    Repayment of the Pre-Payment Amount will be made by Premier from all residual funds from invoices raised by Suzhou TA&A from each monthly Accounting Period following the deduction of agreed Deductible Expenses incurred at the Zulu Project (being all costs and expenditures incurred including government royalties) and management fees to be paid to Premier, until such time as the Pre-Payment Amount has been fully refunded.


    Zulu Lithium Private Limited ("Zulu") and Zulu Lithium Mauritius Limited ("Zulu Lithium") will provide Suzhou TA&A with security over all existing assets including all the mining claims, and all other assets, company shares and inventory including SC6. To the extent that above security fails to cover any outstanding amounts under the Pre-Payment Amount, Premier has agreed to cover this shortfall by way of a cross company guarantee.


    Repayment through invoices raised by Suzhou TA&A for shipped SC6 should commence no later than 31 March 2023 at a minimum rate of 4,000 tonne per month on a rolling average basis following first Concentrate Production ("Supply Commencement Date"). 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.


    Marketing

    Under the Agreement, Suzhou TA&A will have the right to acquire the first three years of production of SC6, or until such time as the Prepayment Amount has been repaid in full, whichever occurs later ("Term"). The Term of the Agreement can be increased by a further three years, subject to the mutual agreement between the parties.

    The sale of SC6 will be priced at a discount conditional on the approval of the Minerals Marketing Corporation of Zimbabwe on the first 50,000 tonne of SC6 shipped ("First Delivery") or until the Pre-Payment Amount has been fully liquidated, whichever occurs first. Following completion of First Delivery, the parties will agree to negotiate a discount based upon market conditions for the remaining Term. The purchase price will be subject to a floor price until such time as either the Pre-Payment Amount has been fully repaid or 31 December 2023.

    Following successful payment of the Pre-Payment Amount, Suzhou TA&A shall have the right of first refusal to match any offer from another interested party to acquire SC6 from the Zulu Project should the parties not agree to a renewal of the Term. This right is subject to standard regulatory requirements, Commercial Best Practice, and the reasonable agreement of commercial terms.

    Related Party Transaction

    Following completion of the subscription agreement by Suzhou TA&A (the "Subscription") as announced on 8 March 2022, Suzhou TA&A is interested in 13.38 per cent. of the issued share capital of the Company. Accordingly, as Suzhou TA&A is currently interested in more than 10 per cent. of the issued ordinary share capital of the Company, the Agreement is a related party transaction for the purposes of Rule 13 of the AIM Rules. As previously announced, as Dr Luo Wei was nominated by Suzhou TA&A as a director of the Company, he is not independent for the purposes of the AIM Rules and the Agreement has therefore been considered by the Independent Directors (being the Board other than Dr Luo Wei).

    The Independent Directors of the Company consider, having consulted with the Company's nominated adviser, Beaumont Cornish, that the terms of the Agreement are fair and reasonable insofar as Shareholders are concerned. The Independent Directors have in particular taken into account that the Agreement provides the immediate funding to enable the construction and commissioning of a large-scale pilot plant at Zulu which the Independent Directors believe provides a significant opportunity at a time when Spodumene prices are expected to remain high given current supply-demand imbalances. The Agreement also provides funding without the issue of any ordinary shares and therefore avoids dilution to shareholders at the current time. Furthermore, in current market conditions, the Independent Directors do not believe that alternative funding would be currently available on acceptable terms to the Company.

    The Independent Directors have taken into account the technical assessment and pilot plant proposal prepared by Stark International Projects Ltd ("Stark") and which is based on a relatively straightforward ore sorting and flotation circuits without the need for any large-scale chemical processing to isolate and produce the lithium bearing spodumene. The Company has a fixed price contract with Stark for the pilot plant, and an economic assessment has been prepared by Bara Consulting (Pty) Ltd (based on the updated scoping study as announced on 16 August 2021) which also reflects that the mineralisation for the pilot plant is near surface. Based on this technical work, the Independent Directors are of the view that while the funding under the Agreement is secured on Zulu and is guaranteed by the Company itself, repayment to Suzhou through production at Zulu can be made in a timely way.
     
  6. Groucho

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    E1214801-1C83-44D5-9C6E-C7CE66EDE427.jpeg
    SP Angel . Morning View . Friday 24 06 22
     
  7. Groucho

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    30 June 2022

    Premier African Minerals Limited


    Final Results


    Premier African Minerals Limited ("Premier" or the "Company"), the AIM-traded, multi-commodity mining and natural resource development company focused in Southern and Western Africa, is pleased to announce publication of its audited Annual Report and Accounts for the year ended 31 December 2021 (the "Annual Report").

    The Annual Report is available on the Company's website, www.premierafricanminerals.com, and is in the process of being posted to Shareholders.

    The Annual Report for the year ended 31 December 2021 is set out in full below.

    The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 as it forms part of UK Domestic Law by virtue of the European Union (Withdrawal) Act 2018.

    The person who arranged the release of this announcement on behalf of the Company was George Roach.

    Premier African Min - Final Results #PREM @Premafrimin https://www.voxmarkets.co.uk/rns/announcement/7260c64e-fd5b-4596-8781-09e2738a627f
    Screenshot_20220630_140452.jpg
    Screenshot_20220630_140521.jpg
     
  8. Groucho

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    1 July 2022

    Premier African Minerals Limited


    Zulu Assay Results Update


    Premier African Minerals Limited ("Premier" or the "Company"), is pleased to report on assay results at Premier's Zulu Lithium and Tantalum Project ("Zulu").

    Highlights:

    · Multiple wide high-grade zones intersected

    · Early QXRD data confirms Spodumene as dominant Lithium mineral

    George Roach, CEO commented, "The detailed results set out below are impressive. Similarly, the early QXRD work confirms our view that the Zulu deposit is predominately spodumene. Notable is the pervasive Tantalum and Rubidium presence. The results reported on are from boreholes within the existing resource area and are part of the ongoing programme that is intended to upgrade confidence in the original resource estimate from an inferred level to an indicated level. At the same time, we have reviewed all the previous work done prior to January 2022, adjusted the geological model as indicated and we are in the process of revalidating many of the previously obtained assay results. The work to date has provided the level of confidence we needed internally to support the pilot plant concept as recently announced. In fact, what we are now understanding about the Zulu deposit is entirely complementary to the use of sensor-based ore sorting and in time is likely to result in a most efficient and effective process.

    It is worth noting that these results below are likely indicative of more than 2,000 outstanding assays now starting to come through. To date since the commencement of the DFS programme, we have completed 82 holes and 18,466 m. Much of the recent drilling has been at close-spaced centres of approximately 50 m and it is this intensity that supports our confidence in this section of the resource. It should be noted that these results are all confined within the original claims area. The deposit remains open on strike in both directions and at depth. The initial QXRD results have highlighted the value of this work providing a better description of the pegmatites and will contribute to future grade control in the pilot plant phase of the Zulu development".

    Drill Holes: Lithium & Tantalum Results

    The table below sets out the independent external laboratory analyses for holes ZDD063, ZDD067, ZDD068, ZDD070, ZDD072, ZDD076, ZDD077, ZDD078 and ZDD079.

    https://www.londonstockexchange.com/news-article/PREM/zulu-assay-results-update/15520963
     
    Last edited: Jul 1, 2022
  9. Groucho

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    Stockbox - short interview with George Roach - re: pilot plant
     
  11. Groucho

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  12. Groucho

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  13. Groucho

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  14. Groucho

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    StockBox interview 12/07/22

    LSE - RE: Q&A StockBox
    Really good interview and some great questions.

    Clearly and rightly, GR's focus is on the pilot mine. I wish that Prem was big enough and had enough cash to follow through on the RUS and the DFS and the EPO area more quickly... these aren't coming anytime soon. We'll get some assay results which will be good - clearly GR is now comfortable with telling us that there have been issues... something he wasn't prepared to admit to at the time!

    I liked what GR said about a possible sale... my hope is to hold Prem for 5-10 years (possibly more) and for it to be delivering a very healthy dividend for years to come. I'd settle on Prem retaining a minority stake in Zulu and/or the EPO area as an alternative. In the meantime, there might be approaches but GR is right... not until the pilot mine is up and running.

    As far as where this leaves the sp, I don't think that there will be any drivers to move it north anytime soon I'm afraid... unless there is some surprise. Bottom drawer for me until the New Year.

    Pilot plant expected Nov - mid Jan.
    Modular design should give very short
    assembly time. 70-75 employees.
     
    Last edited: Jul 13, 2022
  15. Groucho

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    14 July 2022

    Premier African Minerals Limited


    Premier African Minerals Limited ("Premier" or the "Company"), is pleased to report on assay results at Premier's Zulu Lithium and Tantalum Project ("Zulu").

    Highlights:

    · Multiple thick high-grade zones intersected

    George Roach, CEO commented, "The results set out below are again impressive. Notable is the continued pervasive Tantalum and Rubidium presence. The results reported on are from boreholes within the existing resource area and are part of the ongoing programme that is intended to upgrade confidence in the original resource estimate from an inferred level to an indicated level. At the same time, we have reviewed all the previous work done prior to January 2022 and adjusted the geological model as indicated. The work to date has provided the level of confidence we needed internally to support the pilot plant concept as recently announced. In fact, what we are now understanding about the Zulu deposit is entirely complementary to the use of sensor-based ore sorting and in time is likely to result in a most efficient and effective process.

    It should be noted that these results are all confined within the original claims area. The deposit remains open on strike in both directions and at depth."

    Drill Holes: Lithium & Tantalum Results

    The table below sets out the independent external laboratory analyses for holes ZDD033, ZDD034, ZDD035R, ZDD036, ZDD022 and ZDD060.

    Holes ZDD033 and ZDD034 (as announced on 7 February 2022) and ZDD035R and ZDD036 (as announced on 21 February 2022) have been restated to ensure consistency in the reporting methodology in line with the announcement on 1 July 2022.
    Screenshot_20220714_073017.jpg

    Quality Assurance/Quality Control (QA/QC)

    The drill holes are initially sited using a hand-held GPS (Global Positioning System device) within the -tenement areas. Accurate coordinates and elevations of drill holes collars are subsequently derived from a DGPS (Differential Global Position devices) survey.

    Drill cores are geologically logged, intersections of interest are selected are marked-up with unique sample ID assigned before splitting and sampling. Cores are cut in half using a core cutter, individual samples bagged, and sent for analysis.

    Alternating Certified Refence Materials (CRM), blank or duplicate samples are inserted every 10th sample into the sample stream sent to the laboratory to ensure QA/QC compliance. These QA/QC samples are assessed upon receipt of analyses, checked and, if acceptable, accepted into the analytical database. Follow-up with the laboratory is instigated in cases were any QA/QC sample fails the QA/QC parameters.

    All samples are crushed and pulverised to 75 microns with 85% of the pulverised sample passing -75microns. Samples are analysed at the SGS Laboratory Services in Randfontein, South Africa as 30-element scans following a sodium peroxide fusion and ICP-OES and ICP-MS analytical finish (SGS code ICM90A).

    The Geology of Zulu

    The area, located in the Fort Rixon Greenstone Belt, is underlain by Archaean-aged meta-volcanics and meta-sedimentary sequences of the Bulawayan Supergroup, with serpentinites and banded iron formations at the base in the east and metamorphosed volcano-sedimentary sequences to the west. The greenstone belt is tear drop shaped measuring 30 km long and 19 km wide near the broad section at the top. Metamorphism is up to Greenschist facies.

    The Zulu Pegmatite is a LCT (Lithium-Caesium-Tantalum) pegmatite swarm which intrudes along the contacts between serpentine and meta-sedimentary rocks over a strike length of several kilometres. Outcrop widths vary between 10 and 25 m. The pegmatite bodies strike N20° and dip with 70° to 90° to the west.

    The area was first pegged in 1955 by J.S. Willemse and intensely explored, under an option, with mapping, trenching and drilling by Rhodesian Selection Trust Co. Ltd. ("RST") in 1958. In 1961 and 1962 a small quantity of petalite was mined by W. Burchett in partnership with J.S. Willemse. Premier later acquired the claims the Zulu in 2013.

    The thickest pegmatite, north and south of the Machakwe river, is rich in spodumene, petalite and lepidolite while the thinner footwall pegmatites tend to be lower in Li-grade but carry good tantalum and rubidium grades.

    In general, the lithium minerals, occurring in varying quantities, are coarse grained with associated feldspars and quartz with only very minor sulphides being observed. In several contact zones, the lithium-bearing amphibole, holmquistite, has been observed.
     
  16. Groucho

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    LSE - RE: Stockbox Interview
    A very good interview from GR. Lots going on at Zulu with site preparations, road and dam construction, and mine sorters and parts ready for dispatch with everything else ordered and paid for.
    A revised target of mid February for full production seems to be on target.
    We have professional engineering consultants and managers on-site to oversee all the construction of the mine to full production.
    We will have confirmation of the signed agreement within the next few day.
    Everything is looking good, hopefully in February, Prem will move from an explorer to a producer, our market cap by that time will be far more than 61 million. Zulu may well be sold soon after…!
    September may well be the month where we will see some upwards momentum in the share price. Till then I will carry on buying more.
    Zulu is far bigger than Gr, look at the bigger picture and look where we will be when Prem is a producer.
    Good luck to all genuine holders, sit back relax and enjoy the ride.
     
  19. Groucho

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    3 August 2022

    Premier African Minerals Limited


    Zulu Lithium Project Pilot Plant Update

    Premier African Minerals Limited ("Premier" or the "Company"), is pleased to announce that it has concluded the definitive transaction documents in respect of the Marketing and Pre-Payment Agreement ("Agreement") as set out in the announcement dated 24 June 2022 and is in receipt of approximately US$18.1 million of the pre-payment required to have been paid to date. This payment will be utilised for the Zulu plant fabricators and site contractors. Fabrication and site construction is well underway, with a projected completion date for commercial production expected in Q1 of 2023.


    George Roach, CEO commented," I am pleased to confirm the signing of this Agreement and the receipt of funds. Fabrication, site design and construction are underway and projected commencement of commercial production is now scheduled for Quarter 1 of 2023. The pre-payment is expected to be fully offset against future shipments inside of twelve months at the prevailing SC6 pricing.

    We have recently appointed independent project and construction management teams to assist in ensuring compliance with timelines and budgets.

    At the same time, there has been an improved turn around in assays and we expect to release significant results as they come to hand. Further updates on the construction of the pilot plant will be provided in due course."

    The Pilot Plant

    The pilot plant to be commissioned will utilise state of the art sensor-based ore sorting technologies that will facilitate the separation of run of mine material into components and in so doing, likely increase available capacity in the flotation recovery circuits, where lithium minerals are recovered. Ultimate production and recoveries are a factor of many variables, and the pilot plant is likely to assist in dealing with these variables due to the inherent flexibility of the use of multiple ore sorters. Stockpiles of tantalum, petalite and Mica/lepidolite rich material will facilitate further test work and flow sheet development to ensure that this material is truly inventory for later profitable recovery.

    The pilot plant has a nameplate through put of up to 190 tonnes per hour, however it is planned to run at a more conservative 140 tonnes per hour at inception. At this rate and based on a 3-year life of the pilot plant operations only, excluding plant upgrades, tantalum recovery, petalite production and any other revenue, a series of sensitivities indicate a robust project and an assurance that Premier will become cash generative from the time of first shipment.

    Terms of Marketing and Pre-Payment Agreement

    Pre-Payment Agreement

    As previously set out in the binding heads of terms announced on 24 June 2022, under the terms of the Agreement entered into between Premier and Suzhou TA&A today, Suzhou TA&A has agreed to purchase, in advance, US$34,644,385 of product to be sold by Premier ("Advance Purchase Amount") to enable the construction and commissioning of a large-scale pilot plant at the Zulu Project and to date, Suzhou TA&A has made approximately US$18.1 million available to Premier. Under the Agreement, Premier has now agreed to become directly the Seller of the product from the pilot plant at the Zulu Project.

    Repayment of the Advance Purchase Amount will be made by Premier from all residual funds from invoices raised by Suzhou TA&A from each monthly Accounting Period following the deduction of agreed Deductible Expenses (being all costs and expenditures incurred including government royalties) and management fees to be paid by Zulu Lithium to Premier, until such time as the Advance Purchase Amount has been fully offset. Premier has agreed to conclude a management agreement with Zulu Lithium within 30 days of the signing of the Agreement.


    Offset of the Advance Purchase Amount through invoices raised by Suzhou TA&A for shipped SC6 should commence no later than 31 March 2023 at a minimum rate of 4,000 tonnes per month on a rolling average basis plus or minus 10% ("Minimum Delivered Product") following first Concentrate Production ("Supply Commencement Date"). If the Supply Commencement Date does not occur by 31 March 2023 or there is a substantive delay in the subsequent supply of SC6, or there is a shortfall in the Minimum Delivered Amount, then Premier will pay interest to Suzhou TA&A at a reasonable interest rate that represents Suzhou TA&A's actual funding cost for the delay or shortfall.


    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 Advance Purchase Amount. Premier has the right to settle the Advance Purchase Amount at any point.


    Marketing

    Under the Agreement, Suzhou TA&A will have the right to acquire the first three years of production of SC6, or until such time as the Advance Purchase Amount has been offset in full or the first 50,000 tonnes have been shipped to Suzhou T&A, whichever occurs later ("Term"). The Term of the Agreement can be increased by a further three years, subject to the mutual agreement between the parties.

    The sale of SC6 will be priced at a discount conditional on the approval of the Minerals Marketing Corporation of Zimbabwe on the first 50,000 tonnes of SC6 shipped ("First Delivery") or until the Advance Purchase Amount has been fully offset whichever occurs first. Following completion of First Delivery, the parties will agree to negotiate a discount based upon market conditions for the remaining Term. The purchase price will be subject to a floor price until such time as either the Advance Purchase Amount has been fully offset or 31 December 2023.

    The purchase price is also subject to target product specifications, with industry standard adjustment for variations.

    Following full payment of the Advance Purchase Amount, Suzhou TA&A shall have the right of first refusal to match any offer from another interested party to acquire SC6 from the Zulu Project should the parties not agree to a renewal of the Term. This right is subject to standard regulatory requirements, Commercial Best Practice, and the reasonable agreement of commercial terms.

    The Agreement also includes standard events of default and warranties from both Premier and Suzhou TA&A.
     
  20. Groucho

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