Prospect Resources appoints Renaissance Capital as adviser
Harare (New Ziana)-Australian-listed lithium mining firm Prospect Resources, which is developing the Arcadia Mine near Goromonzi on the outskirts the capital, has appointed Renaissance Capital as financial and acquisition advisor, the company said in a notice to shareholders on Monday.
In December 2019, Prospect signed an Memorandum of Understanding with Uranium One through which the latter would be granted an exclusive 90-day period to complete due diligence, leading to negotiations for equity in Prospect and at least 51 percent of Prospect’s future lithium production from Arcadia.
Uranium One is Canada-based unit of Russia’s energy giant Rosatom.
“The discussions with Uranium One are progressing well. In light of this, Prospect has now appointed Renaissance Capital as its exclusive financial advisor in relation to the potential sale, directly or indirectly, of the company’s economic or other participation in, or the whole or part of the licence and/or the assets of, the Arcadia Lithium Project or of the Company itself to Uranium One or its affiliates,” reads the notice.
Renaissance Capital is an investment bank focused on emerging markets of Russia, Ukraine, Kazakhstan and sub-Saharan Africa. The firm engages in the purchase and sale of American Depository Receipts and Global Depository Receipts linked to the Russian equity market.
It also provides investment banking advisory services.
“The discussions with Uranium One are incomplete and ongoing and there is no guarantee that the MOU or any discussions with Uranium One will result in a formal binding agreement or proposal or as to the timing or terms on which any transaction may proceed.”
On the placement of the remaining shortfall shares from the recent rights issue, the miner said: “it will not be placing the shortfall, making the rights issue fully closed.”
The development of the Prospect’s Arcadia Lithium Project will strengthen Zimbabwe’s position among the top lithium producers in the world. The project is the largest lithium deposit in Africa compromising 808 000 tons of lithium oxide.
Prospect’s profit for half 2020 contracted by 35 percent to $2.7 million from $4.1 million recorded in the same period last year.