HARARE (Reuters) – Premier African Minerals is pursuing a lithium concentrate supply deal with commodities giant Glencore Plc, it said on Wednesday, as it seeks to clear debt from an inconclusive offtake agreement.
The London-listed Premier operates the Zulu lithium mine in Zimbabwe, where it has missed several production deadlines because of technical problems to bring online a spodumene concentrator.
As a result, it owes major shareholder Canmax Technologies $35 million plus interest under an offtake prepayment deal.
“Premier has entered into a non-binding letter of interest with Glencore International regarding the possible purchase of spodumene concentrate,” Premier said in a statement.
Glencore declined to comment.
If the deal is concluded, Glencore would assist Premier to manage and repay the debt owed to Canmax and other creditors, Premier said.
Under the 2022 offtake deal, Canmax, the single largest shareholder in Premier with a 13% stake, would get 50,000 metric tons of spodumene concentrate from Zulu annually, starting before the end of May 2023.
Premier said it had agreed with Canmax to secure a binding spodumene purchase agreement with Glencore within the next three months.
(Reporting by Nelson Banya; editing by Barbara Lewis)
