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Oliver Kazunga, Senior Business Reporter

AUSTRALIA-LISTED junior miner, Prospect Resources, which owns the Arcadia Lithium project, presently under development in Zimbabwe has signed an agreement with a European-based distribution company for the uptake of its ultra-low iron petalite.

In a statement yesterday, the Arcadia lithium developer said a Memorandum of Understanding has been  entered with a leading distributor of ultra-low iron petalite, SC-Sibelco N.V.

“Prospect is pleased to announce that it has entered into a Memorandum of Understanding with SCR-Sibelco N.V (Sibelco) for the offtake of Arcadia’s ultra-low iron petalite product,” said the mining group.

It said the purpose of the MOU is to provide an exclusive period of time for the parties to negotiate and execute a Binding Offtake Agreement for Arcadia’s ultra-low iron petalite product.

“The MOU contemplates signing the Binding Offtake Agreement by June 1, 2020.”

“Whilst Prospect and Sibelco have agreed not to deal with any other party in relation to the supply of ultra low iron petalite, nothing in the MOU prohibits Prospect from continuing discussions with the Uranium One Group.”

Prospect, executive chairman Mr Hugh Warner was quoted expressing pleasure of signing the MoU with Sibelco for Arcadia’s premium ultra-low iron petalite.

“Sibelco is the largest distributor of ultra-low iron petalite in Europe and possibly the world.

“It is a significant ‘blue chip’ European customer with annual turnover of some €3,5 billion. Once in production, Prospect will be the largest ultra-low iron petalite producer in the world,” he said.

Meanwhile, Prospect recently announced the appointed of AfreximBank as mandated lead arranger to arrange and manage the primary syndication of a US$143 million project finance debt facility. The regional financier has proposed to fund and hold US$75 million of the facility.

The parties have also agreed a non-binding indicative debt facility term sheet. It is hoped 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 last year, the Zimbabwe Special Economic Zones Authority 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.

@okazunga