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Business Reporter

AUSTRALIA-LISTED mining group, Prospect Resources, which owns the Arcadia Lithium near Harare, has commenced a structured process to allow interested parties to come up with proposals to fully fund the project.

In June, Prospect announced the completion of construction and commissioning of the Arcadia Lithium pilot plant project, marking the commencement of production.

In a trading update released this week, the mining group, which owns 87 percent stake in the Arcadia lithium project said: “The company is pleased to provide an update on the development of its Arcadia Lithium project and its broader corporate activities.

“Following a review of various funding options, and in response to multiple enquiries recently received from a range of international parties in relation to funding and development of Arcadia, the Prospect board has decided to commence a structured process whereby interested parties will have the opportunity to put forward partnership proposals in a competitive environment to fully fund the Arcadia project.”

Azure Capital and Vermilion Partners have been appointed by Prospect to run the process. On the Optimised Feasibility Study (OFS) for Arcadia, the mining group said it is being advanced on a dual-track basis by leading engineering consulting group, Lycopodium Minerals.

The two development pathways under evaluation through the OFS process are a single stage and two-stage development to 2,4 tonnes per annum throughput, via progressive construction of two 1,2 tonnes per annum modules.

“This (two stage development) approach provides a lower upfront capital pathway to production and allows project and market risks to be managed progressively.

“This approach provides greater development efficiencies and higher economic returns, but with higher upfront capital requirements,” said Prospect.

It is hoped that upon completion of the OFS on the two-stage, development remains on track for the third quarter of 2021. The single-stage OFS is now expected to be completed during the fourth quarter of 2021.

Prospect managing director, Mr Sam Hosack, said: “We are excited with the interest from key players in the lithium sector and look forward to working with Azure and Vermilion to find the right long-term partner for the funding and development of the Arcadia Mine”.