Premier African Minerals stock triples on Glencore deal talks

Drilling at Zulu. (Image courtesy of Premier African Minerals.)

Premier African Minerals (LON: PREM) shares more than tripled on Wednesday after the company announced it was pursuing a lithium concentrate supply agreement with Glencore (LON: GLEN).

The stock surged to 0.092p in late-morning trading in London, up from Tuesday’s close of 0.030p. By midday, it was up 80% at 0.056p, valuing the company at £25.3 million ($33.6 million).

Premier, which operates the Zulu lithium-tantalum mine in Zimbabwe, said a potential deal with Glencore could help it resolve a $35 million debt owed to major shareholder Canmax Technologies. The debt stems from an offtake prepayment arrangement tied to a 2022 agreement that promised Canmax 50,000 tonnes of spodumene concentrate annually from Zulu, beginning in May 2023.

Repeated delays in bringing a spodumene concentrator online have prevented Premier from meeting production targets.

The company is now looking to finalize a binding purchase agreement with Glencore within three months. If successful, Glencore would also support Premier in managing and repaying its outstanding obligations to Canmax and other creditors.