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Oliver Kazunga, Senior Business Reporter
AUSTRALIA-LISTED mining group, Prospect Resources, has increased its stake to 87 percent in Arcadia, a local lithium operation situated in Goromonzi, Mashonaland East province.
Prior to the latest development, Prospect controlled 70 percent shareholding in the Arcadia Lithium project. In its annual report for the year ended June 2021, Prospect said: “Following receipt of requisite approvals (including Prospect shareholder approval on 25 June 2021, Prospect completed a value accretive transaction with Farvic Consolidated Mines Pvt Ltd (Farvic), which increased its stake in the Arcadia Project to 87 percent from 70 percent”.
Under the transaction agreement, Farvic agreed to transfer the shares it holds in Prospect Lithium Zimbabwe (Pvt) Ltd (holder of the Arcadia Project) to Prospect Minerals Pte Ltd, a wholly owned subsidiary of the company.
In consideration for the transfer of shares in PLZ, the company issued 9 497 680 fully paid ordinary shares and paid Australian $1,2 million in cash to Farvic.
“The shares issued to Farvic are subject to a voluntary escrow, with 25 percent of the shares being released every six months,” said Prospect.
In August, the mining group, announced the commencement of a structured process to allow interested parties to come up with proposals to fully fund the project following the completion of construction and commissioning of a pilot plant at Arcadia, marking the commencement of production.
Through the pilot plant, the mining group is able to demonstrate the ability to produce high purity products at planned volumes and enhance technical elements of the project execution phase.
“The board is prioritising the development of Arcadia through the partnership process over other funding options, to provide more flexibility, accelerate project execution and bring the project into production at the earliest possibility,” said Prospect.
Last year the mining group announced that it had secured a long-term agreement with Sibelco N.V, the world’s largest industrial minerals solutions company to supply petalite from its Arcadia Lithium project. — @okazunga
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