Prospect Resources is an Australian lithium developer that is driving the Arcadia project in mine-friendly Zimbabwe with plans to bring a pilot plant into production in 2021. The Arcadia project is the seventh largest lithium project in environmentally friendly hard rock in the world.
However, when considering the purity of the deposit, Arcadia is number one because of its extremely low iron content. This is also the reason why purchase agreements for the high quality spodumene concentrate (Uranium One and Sinomine) and the very valuable petalite concentrate (Sibelco) have already been successfully announced. However, Prospect Resources is also interesting for a possible acquisition, as lithium demand is expected to increase significantly in 2021, as did the prices of the e-mobility mineral recently. With a net present value (NPV10) of USD 710 million, a highly lucrative pre-tax internal rate of return (IRR) of 71% and a confirmed mine life of more than 15 years, Arcadia is definitely on the watch list of battery manufacturers. Also the financing of a mining facility is limited with an estimated USD 162 million and will be supported by Afreximbank. Whether Prospect Resources might be taken over by a third party until the start of the pilot plant remains pure speculation. However, in July 2020, a consulting agreement was signed with Russian Renaissance Capital, which is to concretize talks with Russian Uranium One. Arcadia is the only lithium project in the world that is not yet controlled by the Americans or Chinese.