Premier African Minerals Ltd (LON:PREM) has agreed to let Cadence Minerals Plc (LON:KDNC) have a little more time to carry out its due diligence on the Zulu lithium and tantalum project in Zimbabwe.
Back in June, Cadence signed a conditional heads-of-terms agreement to acquire up to a 30% stake in Zulu for up to US$5.1mln.
READ: Cadence set to invest in Zulu
The plan is that the investment will fund the definitive feasibility study of the project, where a scoping study revealed a lithium concentrate net present value (NPV) of US$127mln and lithium carbonate NPV of US$718mln last year.
Before finalising the deal, Cadence wanted to carry out its due diligence on Zulu but the recent elections in Zimbabwe have caused some “unexpected interruptions” so Premier has granted Cadence an extra 20 days to cast its eye over the project.
The due diligence period is now due to run until September 14.