Premier African Minerals, Glencore ink lithium offtake agreement
Premier African Minerals has entered into a non-binding Letter of Interest (LOI) with Glencore International, paving the way for a potential sales agreement involving spodumene concentrate from the company’s Zulu Lithium and Tantalum Project in Zimbabwe. The finalization of a binding agreement is expected within three months, contingent on the project achieving specific production targets in terms of grade and volume.
Zulu Project
The Zulu Project, situated approximately 80 kilometers from Bulawayo, is considered one of Zimbabwe’s most significant undeveloped lithium-bearing pegmatites. Spanning an area of 3.5 square kilometers across 14 mineral claims, the site holds substantial potential for lithium and tantalum production. The successful sale agreement will depend on the performance of the new processing plant currently under development at Zulu.
Premier has an existing relationship with Canmax Technologies, having previously entered into an Offtake and Prepayment Agreement in August 2023. Under that deal, Premier committed to delivering 48,000 tonnes of spodumene concentrate to Canmax, which in turn provided a prepayment of $34.6 million (equivalent to 252.116 million yuan). This agreement was later amended in December 2024, and a further modification was recently finalized to support ongoing developments.
George Roach, CEO of Premier African Minerals, expressed gratitude for the dedication shown by all involved parties in reaching this critical stage. He emphasized that the company’s primary focus now is on completing and optimizing the spodumene flotation section of the processing plant. Beaumont Cornish, a firm regulated by the Financial Conduct Authority in the United Kingdom, is acting as the nominated adviser to Premier for this transaction.
