Prospect raises $25m to spend on Arcadia lithium project
An Australia-listed firm Prospect Resources, says it has set aside at least $25 million to fund the construction of a mine and plant at its Arcadia lithium project situated about 38km East of the capital close to the long established Arcturus gold mine.
Prospect is a southern Africa focused lithium and gold mining and exploration company based in Perth, Australia, with operations in Zimbabwe.
Last year, the Zimbabwe Government granted the company National Project Status to develop Arcadia.
The project is the largest lithium deposit in Africa comprising 808 000 tons of lithium oxide.
“We finished the quarter with A$20 million (US$15,1 million) cash available to spend on Arcadia and a further US$10 million funding commitment,” said the company in a quarterly report ending March this year.
Net cash generated from operations for the quarter under review stood at A$1,2 million (US$924,589).
The company targets to complete process plant design at its Arcadia lithium project and execute first mining contracts in the next quarter.
Early this month, the company announced the completion of a A$10 million placement at six cents per share to Sinomine and US$557 million Sinomine offtake agreement.
“A completed Sinomine transaction including a A$10 million share placement at six cents and a future prepayment of US$10 million and a repricing of the offtake agreement resulting in a US$61 million increase in NPV of Arcadia to US$401 million,” the company said.
“Conditional, indicative offers to finance the balance of the Arcadia mining development and continued third party interest to build the lithium carbonate and hydroxide plant in Zimbabwe.”
Prospect said during the quarter, the option over the Good Days Lithium Project was exercised.
“Whilst the immediate focus is on bringing Arcadia into production as soon as possible, we continue to carry out low level exploration at Good Days,” it added.
The company also operates Sally Gold Mine and Prestwood Gold Mine, located in Gwanda, Matabeleland South. -New Ziana