Chronicle Editor
Pride Mahlangu, Business Reporter
AUSTRALIA-LISTED junior miner, Prospect Resources, has appointed Afreximbank as lead arranger of a US$143 million debt facility for its Arcadia lithium project near Harare.
In a statement, Prospect said the appointment of AfreximBank as mandated lead arranger was a critical milestone in the financing of the lithium project, which is undergoing development.
“The company is pleased to announce that Afreximbank has been appointed to arrange and manage the primary syndication of a US$143 million project finance debt facility.
“AfreximBank is proposing to fund and hold US$75 million of the facility. The parties have also agreed a non-binding indicative debt facility term sheet,” it said.
Prospect said parties in the deal would now undertake further detailed due diligence and negotiate the final facility agreements. It is hoped that execution of the facility agreements will be subject to Afreximbank’s further due diligence and credit approvals and drawdown would be subject to satisfaction of various conditions precedent to be included in the agreements.
Prospect Resources executive chairman, Mr Hugh Warner, was quoted as saying: “We are very pleased to have agreed this mandate with Afreximbank, who have significant experience lending into Zimbabwe.
“The company’s Arcadia lithium project is expected to be the first African lithium mine financed by Afreximbank and the first African lithium mine to attract debt finance.
“We welcome Afreximbank as a long-term partner and look forward to working together to deliver a tier-one lithium project”.
It is anticipated that the Arcadia lithium project, which has been granted a Special Economic Zones status by the Government will create up to 10 000 jobs along the value chain.
Early this year, the Zimbabwe Special Economic Zones Authority (Zimseza) announced that the Arcadia lithium project was set to attract US$165 million in foreign direct investment with potential to generate an estimated US$3 billion income in the first 12 years of operation. — @pridesinstinctz.
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