Prospect appoints advisor for disposal of Arcadia Lithium project

07 Jul, 2020 - 02:07 0 Views
Prospect appoints advisor for disposal of Arcadia Lithium project

eBusiness Weekly

Business Writer

African lithium developer, Prospect Resources, has appointed Renaissance Capital as financial adviser in relation to the potential sale of its interest in Arcadia Lithium Project to Russian energy firm, Uranium One.

Arcadia Lithium is Prospect Resources’ 87 percent owned flagship project located on the outskirts of Harare in Zimbabwe.

On 12 December 2019, Prospect Resources (Prospect) announced it had entered into a Memorandum of Understanding (“MOU”) with Uranium One Group JSC (“Uranium One”).

According to the MOU, and subject to satisfactory due diligence the two firms will negotiate: equity investment terms in Prospect or its subsidiaries; and off-take terms for at least 51 percent of the Company’s future lithium production.

On Monday, Prospect said discussions with Uranium One are progressing well and went on to announce the appointment of Renaissance Capital as its exclusive financial advisor in relation to the potential sale.

“In light of this, Prospect has now appointed Renaissance Securities (Cyprus) Limited (“Renaissance Capital”) as its exclusive financial advisor in relation to the potential sale, directly or indirectly, of the Company’s economic or other participation in, or the whole or part of the licence and/or the assets of, the Arcadia Lithium Project or of the Company itself to Uranium One or its affiliates.

Prospect, however, said the discussions with Uranium One are “incomplete and ongoing and there is no guarantee that the MOU or any discussions with Uranium One will result in a formal binding agreement or proposal or as to the timing or terms on which any transaction may proceed”.

Renaissance Capital, which used to have an office in Zimbabwe, is a leading independent investment bank, providing access to over 50 markets across the globe.

Demand for lithium is anticipated to grow exponentially as electric vehicles become more common and affordable, driving growth in global demand, as is the case at the moment with internal combustion engines (ICE).

Zimbabwe’s lithium deposits are second to none in Africa, and proven deposits are located in Bikita, Goromonzi, and Kamativi.

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