Prospect now owns 87pc of the world-class Arcadia lithium project
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Near term lithium miner Prospect Resources (ASX:PSC) has increased ownership in the tier 1 Arcadia lithium project in Zimbabwe by 17% to 87%.
Prospect will issue about 9.5 million shares and $1.2m cash to vendor Farvic Consolidated Mines.
The shares issued are subject to a voluntary escrow, with 25% set to be released every six months.
The increase in ownership will have a major positive impact on financing Arcadia project development, the company says.
The Arcadia project in Zimbabwe has a high grade JORC mineral resource of 43.2 million tonnes at 1.45% lithium oxide and 119 parts per million tantalum pentoxide for 61.5 million tonnes of lithium oxide and 11.3 million pounds of tantalum pentoxide.
The project’s DFS was updated in 2019, outlining a low-cost project with a pre-tax internal rate of return of 71% and payback within 18 months of first production.
The DFS mapped an estimated 15.5-year initial mine life – a substantial project of note in a country where lithium potential is largely untapped.
These numbers may improve further, with an optimised Feasibility Study due out in Q3 this year.
The project has offtake partners secured and with its pilot plant up and running looks to be one of the most advanced ASX-listed lithium projects.
This article was developed in collaboration with Prospect Resources, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.