AUSTRALIA Stock Exchange (ASX) listed Prospect Resources, says its Zimbabwean unit, Prospect Lithium Zimbabwe, has secured $10 million export finance facility from the Reserve Bank through CBZ Bank Limited. The batteries lithium miner said the loan was another building block in the financing of the Arcadia Lithium Mine and tangible evidence of the Government's support for the Arcadia Lithium Mine.
Prospect Resources said the facility extended to its 70 percent owned subsidiary carries an interest rate of 7,5 percent and a capital repayment holiday of 12 months, after which monthly capital repayments will be made for 24 months. The purpose of the facility is to foster the development.
"Funds drawn from the facility are expected to be used to meet local costs on the mine development including the construction of the tailings facility, pre-strip of the mine site and building construction," Prospect said.
Prospect Resources Limited is an Africa-focused electric vehicles battery minerals company based in Perth, Australia with operations in Zimbabwe, and exploration activities in Zimbabwe and the DRC.
Prospect's flagship project is the Arcadia Lithium Project located on the outskirts of Harare in Zimbabwe.
The Arcadia Lithium project represents a globally significant hard rock lithium resource and is being developed by Prospect's experienced team, focusing on near term production of petalite and spodumene concentrates.
The batteries lithium key outcomes of the updated pre-feasibility study include a Life of Mine (LOM) of over 20 years based on an Ore Reserve of 26,9 tonnes grading 1,31 percent lithium carbon.
The lithium mining company's primary focus is the development of the Arcadia Project electric vehicle battery lithium, but exploration and review of other battery metal projects within Prospect's portfolio is ongoing.
Prospect expects to secure more than $55 million in funding for the first phase of the Arcadia Lithium project in Zimbabwe and expects to produce concentrates for export in the next 14 months.
Zimbabwe's mining affairs board last month gave the electric vehicles battery-lithium producer Prospect Resources a mining lease that amalgamates 57 mining claims belonging to its Arcadia lithium project.
Prospect said the mining lease covers an area of 1031 hectares, which encompasses a total of 57 mining claims owned by Prospect Lithium Zimbabwe, which is listed on the Austria Stock Exchange.
Prospect Resources recently completed building the lithium carbonate plant, and awaits its commissioning.
The lightest and least alkali metal, lithium enjoys widespread commercial use in grease, dryers, air conditioners, medicines and a fast-rising call from the battery and renewable energy sectors. Deposits in Zimbabwe include deposits at Kamativi Mine, Bikita Mine, Zulu Project, Arcadia Lithium Project.