Prospect Resources Limited, a battery minerals company with a focus on lithium in and around Zimbabwe, has appointed leading investment bank Renaissance Capital as its advisor on the possible sale of its interests in the Arcadia lithium mine to Russian energy firm Uranium One.
Prospect and Uranium One entered into a Memorandum of Understanding in December 2019 on exclusive talks towards equity in Arcadia and an offtake agreement.
In a statement on Monday, the company said:
The discussions with Uranium One are progressing well. In light of this, Prospect has now appointed Renaissance Securities (Cyprus) Limited 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.
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.
The MoU was postponed twice due to disruptions caused by COVID-19. It will now expire on August 10.