Harare – Australian-listed Prospect Resources, announced on Tuesday that its 70 percent owned Zimbabwe subsidiary, Prospect Lithium Zimbabwe (Pvt) Limited has received a $10 million Export Finance Facility from the Reserve Bank of Zimbabwe through CBZ Bank Limited.
In May this year, Prospect Resources said it has secured more than $55 million in funding for the first phase of the Arcadia Lithium project in Zimbabwe and expects to produce concentrates for export going forward.
Last month it announced that the Mining Affairs Board of Zimbabwe has issued to Prospect Lithium Zimbabwe (Pvt) Limited a Mining Lease covering the Arcadia Lithium Mine.
“The Facility carries an interest rate of 7.5 percent and a capital repayment holiday of 12 months, after which monthly capital repayments are to be made for 24 months.
“The purpose of the Export Finance Facility is to foster the development of existing and new export focused businesses in Zimbabwe,” said Prospects.
The miner said funds will be used to meet local costs to develop the lithium project in Zimbabwe.
“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.”
It added that, “Prospect sees this loan as another building block in the financing of the Arcadia Lithium Mine and tangible evidence of the government’s support for the Arcadia Lithium Mine.”
Zimbabwe’s new administration is pushing lithium as a major draw for investors as it looks to attract capital to its mining sector following the ousting last year of former president Robert Mugabe after almost four decades in power.
Equity Axis News