BUSINESS REPORTER
Chinese firm Huayou International Mining Limited (Huayou) has snapped up Arcadia Lithium Project in a transaction which will total US$422m.
Huayou will acquire 87% shareholding in Prospect Lithium Zimbabwe (Pvt) Limited, owner of the Arcadia Lithium Project (Arcadia) in Zimbabwe and associated intercompany loan for approximately US$377.8m in upfront cash consideration, equating to approximately A$1.23 per Prospect ordinary share.
The transaction represents the culmination of the strategic partnership process undertaken by Prospect since August 2021, Prospect Resources said on Thursday.
Last month, Prospect said it had received seven non-binding proposals for the advancement of Arcadia from a range of international parties.
Huayou has also agreed with the other two shareholders of PLZ, Professor Kingston Kajese and the Tamari Trust, to acquire their shareholdings in PLZ, conditional on the transaction with Prospect completing.
Prospect MD and CEO Sam Hosack, said the transaction is the culmination of a process that gained global traction and generated inbound interest among potential partners for the world-class Arcadia Lithium Project.
“The Prospect board has undertaken a detailed evaluation of all proposals received through this competitive process. The conclusion of this evaluation is that the Huayou proposal offers a highly attractive risk-adjusted proposition for Prospect shareholders, particularly when considered against the timing and execution risks attached to development and operation of the Arcadia Project either under Prospect’s ownership or in joint venture,” Hosack said.