Resources firm, Prospect Resources, has shortlisted seven potential partners to undertake its Zimbabwe-based Arcadia Lithium project under a joint venture arrangement, Business Times can report.
Prospect’s MD Sam Hosack said the proposals came from international parties.
“Following a period of engagement with interested parties, over the past week, Prospect has received seven non-binding proposals for the advancement of Arcadia from a range of international parties, encompassing structures including development joint venture, off-take prepayment debt funding and outright acquisition of Prospect’s interest in Arcadia,” he said.
Hosack said there is no certainty that a transaction will be pursued or whether any proposal will result in a definitive agreement being reached.
“In conjunction with financial advisers, Azure Capital and Vermilion Partners, Prospects is assessing the proposals to determine the preferred path forward,” he said.
Prospect Resources recently completed a feasibility study for its Arcadia Lithium which has confirmed strong technical and economic viability of Arcadia under a staged development pathway.
The staged study reflects the strong potential of Arcadia to become a compelling long life, large scale, hard rock open pit lithium mine in Zimbabwe, Southern Africa.
It also confirms that the Project is among the best in the world for scale and cost of production when compared to existing operations and other prospective projects.
According to the company, a key competitive advantage lies in the quality of the lithium concentrate products, being high in grade and very low in impurities.
Arcadia is a relatively simple and robust development, with high grades and low strip ratios enhancing financial outcomes.
The company noted that the project delivers outstanding returns independent of by-product credits and the lithium price environment and the staged development pathway outlined in this study presents a lower upfront capital hurdle, with an approach that addresses all technical, commercial and operating risks, and delivers a progressive ramp up and ability to further optimise Stage 2.
This study was prepared by leading engineering consulting business, Lycopodium, with assistance from Prospect and selected external contributors.
Arcadia is located in the Mashonaland East District of Zimbabwe, approximately 38km east of Harare.
Arcadia is owned by Prospect, through its 87% owned subsidiary, Prospect Lithium Zimbabwe (Pvt) Ltd.