Premier African Minerals Ltd. canceled a drilling program at its Zulu lithium project in Zimbabwe after it failed to agree on a revised pricing structure for a drilling contract with KME Plant Hire (Pty) Ltd.
As a result, Premier African Minerals canceled the 212,413,793 new ordinary shares it issued at 14.5 pence apiece as prepayment for KME. The company said May 28 that it is now in talks with its previous contractor to recommence drilling at Zulu.
The development comes after Premier African Minerals recently terminated discussions to acquire 50% of KME.
The company also said it agreed to entertain an approach from a potential alternative buyer of wolframite and facilitate a due diligence process by two other finance institutions over the RHA tungsten mine as it awaits the US$6 million in funds the Zimbabwe government pledged to invest.