Premier African Minerals delays Zulu lithium restart as Canmax talks drag

Premier African Minerals has put off restarting its Zulu lithium and tantalum plant in Zimbabwe until it concludes negotiations with Chinese offtake partner Canmax Technologies over an extension to the project's long stop date.

The AIM-listed company had hoped to resume processing in July. In an update on 28 July it said the plant would now restart only after the talks were concluded and the terms announced, with a revised operating timetable to follow, Share Talk reported.

Stockpiling in the meantime

Mining and stockpiling continue at Zulu as Premier builds a larger inventory of run-of-mine ore before the next production and optimisation campaign. The company said a bigger stockpile should make better use of resources once the plant restarts. Processing in June had exposed several reliability and operability problems, and engineers have since carried out modifications, upgrades and maintenance across the plant.

Premier described the discussions with Canmax as constructive, saying the Chinese group is reviewing operating and commissioning data from the upgraded flotation circuit. It cautioned that there was no certainty an extension would be agreed or on what terms.

Another small raise

A day later the company raised about £550,000 before expenses by issuing 4 billion new shares at 0.01375 pence each, taking its issued share capital to just over 50 billion shares, Yahoo Finance reported. The money will fund mining and stockpiling at Zulu, payments to key creditors and general corporate costs.

Managing director Graham Hill said the subscription provided working capital while the company progressed its talks with Canmax. UK Investor Magazine observed that the relationship has dragged on for years, with Premier unable to deliver the contracted volumes of lithium concentrate or to pay the penalties for the shortfall.

Why it matters

Zulu is a rare London-listed lithium project in a Zimbabwean sector dominated by Chinese operators, and its history has become a cautionary tale about the difficulty of commissioning a spodumene flotation circuit without deep pockets. Repeated small placings have steadily diluted shareholders.

The regulatory backdrop adds pressure. Zimbabwe froze concentrate exports in February, now allows shipments only under quota, and plans to ban concentrate exports from January 2027. A junior producer without processing capacity of its own will need a clear route to market, which is why the Canmax terms matter as much as the plant's performance.

Sources

• Share Talk: Premier African Delays Zulu Lithium Restart Pending Canmax Agreement, 28 Jul 2026
• UK Investor Magazine: Premier African Minerals raises £550,000 as Canmax talks continue, 29 Jul 2026
• Yahoo Finance UK: Premier African Minerals Secures £550,000 to Advance Zulu Lithium Project, 29 Jul 2026

Photo: Lepidolite, a lithium-bearing mica found in pegmatites like those mined at Zulu. Zbynek Burival, Wikimedia Commons, CC BY-SA 4.0.