Lithium mine in Zimbabwe is expected to receive more than $55 million in financing

Australia-listed Prospect Resources revealed on Sunday that the first phase of the Arcadia lithium mine in Zimbabwe is expected to receive more than $55 million in financing and will begin producing concentrates for export in the next 14 months.

Prospect Resources has acquired a $10 million equity investment in China National Resources, and China National Resources will also pay an additional $10 million as an advance on the purchase of lithium concentrate. The company has signed a seven-year off-take agreement with Prospector Resources.

Zimbabwe is pushing for lithium mines as a magnet for investors, and the country is attracting money to invest in mining. Former President Mugabe, who has been in power for almost four decades, stepped down last year.

Paul Chimbodza, director of Prospect Resources, said the new round of financing had attracted money from banks and investment circles in North America, Asia and Zimbabwe. The company has hired a contractor to start work near the project in two weeks.

Many companies have shown interest in Zimbabwe and compared the country's great Dyke to South Africa's mineral-rich bushveld project, but they are also waiting for certainty of policy and hope government regulation can be simplified.

According to Chimbodza, the Arcadia mine will produce concentrate suitable for the battery and ceramic industries. He added that it would take no more than three years to start producing battery-grade lithium carbonate. A Project pilot plant project currently produces 100 kilograms of lithium carbonate per year.

Prospect currently has a market value of 72 million U.S. dollars, but the market value of lithium ore resources similar to or less than its peers is equivalent to 5-10 times its market value. This reflects the political risk factors in Zimbabwe and Africa, he said.

The page contains the contents of the machine translation.