- December 17, 2019
- Posted in LOCAL
African lithium company, Prospect Resources Ltd (ASX:PSC, FRA:5E8) (“Prospect Resources” or the “Company”)
is pleased to announce that African Export-Import Bank (“Afreximbank”) has been appointed to arrange and
manage the primary syndication of a US$143m project finance debt facility.
Afreximbank is proposing to fund and hold US$75m of the facility. The parties have also agreed a non-binding indicative debt facility term sheet.
The appointment of Afreximbank as mandated lead arranger is a critical milestone in the financing of the Arcadia
lithium project in Zimbabwe. The parties will now undertake further detailed due diligence and negotiate the
final facility agreements. Execution of the facility agreements will be subject to Afreximbank’s further due
diligence and credit approvals and drawdown will be subject to satisfaction of various conditions precedent to
be included in the agreements.
Prospect Resource Executive Chairman, Hugh Warner, said: “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. Afreximbank as a long-term partner and look forward to working together to deliver a tier one lithium project.”