Premier African Minerals (LSE:PREM) has agreed a mutual release and settlement with contractor J R Goddard Contracting in relation to a US$2.4 million claim associated with the Zulu Lithium and Tantalum Project in Zimbabwe. The agreement removes the risk of immediate enforcement action against the company’s movable assets and provides greater clarity around its short- to medium-term funding and operational plans.
Under the terms of the settlement, Premier will make an initial payment of US$400,000 by 30 January 2026, followed by monthly instalments through to November 2026. J R Goddard Contracting has agreed to suspend enforcement proceedings for as long as Premier adheres to the agreed payment schedule. The board said the structured settlement offers improved certainty as the company continues to progress development activities at Zulu.
Alongside resolving the dispute, Premier said it is actively seeking to strengthen its board. The company is prioritising the appointment of technically focused directors with relevant market and operational experience to support the next stage of development at the Zulu project. Management said the move reflects a broader push to enhance governance, technical oversight and strategic execution as it advances its flagship lithium asset.
From a market perspective, Premier’s outlook remains constrained by weak financial fundamentals, including ongoing losses, negative gross profit and continued cash outflows, with no reported revenue to date. Share price technical indicators also remain bearish, with the stock trading below key moving averages and momentum measures signalling continued pressure. Valuation support is limited given negative earnings and the absence of a dividend.
More about Premier African Minerals
Premier African Minerals Limited is a multi-commodity mining and natural resource development company focused on Southern Africa. Its asset base includes the RHA Tungsten mine and the Zulu Lithium project in Zimbabwe, alongside interests in lithium, tantalum, rare earth elements and other strategic minerals, spanning assets from early-stage exploration to projects with near-term production potential.
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