70%-owned subsidiary of Zimbabwe lithium contender Prospect Resources has received a US$10 million export finance facility from the Reserve Bank of Zimbabwe through CBZ Bank for the Arcadia project.
According to Prospect, the funding is provided “to foster the development of existing and new export focused businesses in Zimbabwe”, with the developer to use the facility to meet local costs on the mine development including the construction of the tailings facility, pre-strip of the mine site and building construction.
The facility carries an interest rate of 7.5% and a capital repayment holiday of 12 months, after which monthly capital repayments are to be made for 24 months.
Prospect is to provide an updated Arcadia feasibility study later this year.
While a prefeasibility study updated earlier this year outlined a 1.2 million tonne per annum development costing $52 million, Arcadia recently said a “higher production/throughput and capex outcome (was) likely” following optimisation work.
Arcadia has 27 million tonnes of reserves grading 1.31% lithium oxide and 128 parts per million tantalum oxide.
Prospect had cash at June 30 of A$16 million.
Shares in Prospect have been trading at 2.5c, capitalising the company at $50 million.