Emmerson Njanjamangezi, Group Features Editor 
ASX listed Prospect Resources says it has begun the process to select a long-term financier to fully fund its Zimbabwe Arcadia lithium project following a surge in enquiries by potential partners.
In a statement this week, managing director Sam Hosack said there has been a slew of enquiries recently received from a range of international parties in relation to funding and development of the project.
“…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.
“The Board is prioritising the development of Arcadia through this partnership process over other funding options, to provide more flexibility, accelerate project execution and bring the Project into production at the earliest possibility.”
Hosack said Azure Capital and Vermilion Partners have since been appointed by Prospect to run the process.
“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,” Hosack said.
Turning to the Optimised Feasibility Study (OFS) for the project, Hosack said it was 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 two-stage development to 2.4 Mtpa throughput, via progressive construction of two 1.2 Mtpa modules. This approach provides a lower upfront capital pathway to production and allows project and market risks to be managed progressively.
“A single-stage development to a 2.4 Mtpa throughput operation. This approach provides greater development efficiencies and higher economic returns, but with higher upfront capital requirements.
“Completion of the OFS on the two-stage development remains on track for Q3 2021. The single stage OFS is now expected to be completed during Q4 2021,” Hosack added.
The Arcadia project was commissioned early this year and completed construction of its lithium pilot plant and has already begun shipments of technical grade bulk samples for product qualification to offtake partners — Sino Mine China and Sibelco Belgium.
The lithium project which is based on the outskirts of Harare is 87 percent owned by Prospect Resources Limited based in Perth.
Arcadia is one of the most advanced lithium projects globally, with a Definitive Feasibility Study, secure offtake partners and a clear pathway to production.
Zimbabwe stands a chance to supply lithium and petalite to the world’s largest buyers.
The addressable technical market in ceramics/glass for petalite is 450 000 tonnes per annum.
While existing global petalite production sources have declined over recent years, Zimbabwe’s Arcadia is the only known petalite of scale, globally.
With the view to maximize the global supply opportunity for petalite and lithium, the government accorded the project Special Economy Zone status. This allows offshore forex banking, exemptions on withholding tax for dividends, remittances and royalties as well as customs clearance at mine site. newsdesk@fingaz.co.zw
