Zimbabwe: Arcadia's Prospect Inks Lithium Purchase Deal

13 December 2019

African lithium developer, Prospect Resources, has signed a Memorandum of Understanding with Russian energy firm, Uranium One, for a 90-day exclusivity period to complete due diligence on Prospect and its units, acquire equity and seal an off-take agreement for 51 percent of the miner's future lithium production.

Prospect, which owns Arcadia lithium mine 38 kilometres east of Harare, said the discussions with Uranium One were incomplete and ongoing and there was no guarantee that the MOU or any discussions will result in a formal binding agreement or proposal as to the timing or terms on which any transaction may proceed.

Uranium One is a global energy company and one of the world's largest uranium producers, with a diverse portfolio of assets worldwide, including in Kazakhstan, the United States and Tanzania. Uranium One is owned by ROSATOM, the Russian State Corporation for Nuclear Energy.

Prospect suspended trading in its shares yesterday saying the Australia Stock Exchange listed stock would remain in trading halt until the company had made a major announcement or resumed normal trading today.

Prospect is developing the electric vehicle batteries lithium mine near Harare, which Government has granted Special Economic Zone (SEZ) status, given its strategic importance to the target of a US$12 billion mining industry by 2023.

Arcadia has an ore reserve of 26,9 million tonnes grading 1,3 percent lithium oxide. A definitive feasibility study indicates that it can produce 212 000 tonnes per annum. It's lithium is used for electric vehicles battery making, glass and ceramics industries.

A trading halt is a temporary suspension of trading for a particular security or securities at one exchange or across numerous exchanges.

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