• Premier African Minerals Limited has entered a US$2.4 million settlement with J R Goddard Contracting, suspending a writ of execution at its Zulu Lithium and Tantalum Project in Zimbabwe
• The debt arose from unpaid construction and infrastructure work, with an initial payment of US$400,000 due by January 30, 2026, and the remainder scheduled in monthly installments through November 2026
• The settlement provides temporary operational stability but highlights liquidity pressures, governance challenges, and risks in a volatile global lithium market

Harare - Premier African Minerals Limited has entered into a mutual release and settlement agreement with J R Goddard Contracting (Private) Limited (JRG) regarding a US$2.4 million debt tied to its Zulu Lithium and Tantalum Project in Zimbabwe.

J R Goddard Contracting (Pvt) Ltd, founded in 1982 by James Ross Goddard, is Zimbabwe’s largest privately owned construction company. The firm specializes in large-scale civil infrastructure, including earthworks, dams, roads, and turnkey construction projects with over 100 dams completed, including major projects such as the Bembezaan and Risitu Dams, JRG operates across Southern Africa.

The agreement suspends a writ of execution for movable property that had threatened the seizure of assets at the project, allowing Premier to continue operations while adhering to a structured repayment schedule.’

‘’ The Settlement Agreement provides for the suspension of enforcement action by JRG for so long as Premier and Zulu Lithium remain fully compliant with the agreed payment schedule,’’ reads the corporate update .

The debt owed to JRG arose from contracted construction and civil works at Zulu Lithium, including site preparation, earthworks, and associated infrastructure necessary for project commissioning.

Delays in cash flow and cost overruns at the project, coupled with tighter financing conditions for junior miners, contributed to unpaid invoices, prompting JRG to seek legal enforcement to recover its claim. The settlement now resolves this outstanding liability.

Under the settlement, Premier will pay the full US$2.4 million owed to JRG, along with interest accruing at the applicable judgment rate on a reducing balance.

An initial payment of US$400,000 is due by January 30, 2026, with the remainder scheduled in monthly installments through November 2026.

Enforcement action is suspended only while payments are made according to the schedule. The arrangement constitutes a forbearance rather than a waiver of rights, meaning that any default would immediately reopen the possibility of enforcement.

The settlement underscores both the financial and governance vulnerabilities facing junior lithium miners, particularly in an environment where global lithium prices have softened and capital has become more constrained.

Premier’s dispute with JRG illustrates the pressures confronting smaller operators in a market that is shifting rapidly. When Zulu Lithium was first advanced, the project benefited from soaring global lithium prices, rapid expansion in the electric vehicle sector, and intense competition among battery manufacturers for supply security.

Since late 2023, however, the market has undergone a sharp correction. Rapid expansions in Australia, China, and parts of South America created oversupply, while EV demand growth slowed as subsidies were reduced and inventories built up across the value chain.

Spot lithium prices have fallen significantly from their 2022 highs, compressing margins and forcing stricter cost control across the sector.

Junior miners, particularly those without diversified revenue streams or robust balance sheets, have been the most exposed as access to project finance has narrowed, equity markets have become selective, and contractors increasingly demand strict payment terms, raising the risk of disputes when cash flow is under pressure.

Premier’s encounter with JRG fits squarely within this broader global pattern, illustrating how market volatility translates into operational and legal stress for smaller producers.

In Zimbabwe, the lithium boom has exposed structural weaknesses. The country has become one of Africa’s most active lithium jurisdictions, driven by Chinese investment and rapid project development, but the pace of expansion has revealed infrastructure constraints, execution bottlenecks, and financial fragility among junior operators.

While larger players have been able to absorb market volatility, companies such as Premier remain highly exposed to price cycles and funding disruptions. The writ of execution issued in December 2025 signaled to investors that Zulu Lithium’s operational challenges were no longer theoretical.

The settlement removes the immediate threat of asset seizure but does not address the long-term question of whether the project can advance sustainably under current market conditions.

 Equity Axis News