Following a review of various funding options, and in response to multiple enquiries recently received from a range of international parties in relation to funding and development of Arcadia, the Prospect Resources Board has decided to commence a structured process whereby interested parties will have the opportunity to put forward partnership proposals in a competitive environment to fully fund the Arcadia project.
The Board is prioritising the development of Arcadia through this partnership process over other funding options, to provide more flexibility, accelerate project execution and bring the Project into production at the earliest possibility.
Azure Capital and Vermilion Partners have been appointed by Prospect to run this process.
The OFS for Arcadia is being advanced on a dual-track basis by leading engineering consulting group, Lycopodium Minerals. The two development pathways under evaluation through the OFS process are:
- A two-stage development to 2.4 Mtpa throughput, via progressive construction of two 1.2 Mtpa modules. This approach provides a lower upfront capital pathway to production and allows project and market risks to be managed progressively.
- A single-stage development to a 2.4 Mtpa throughput operation. This approach provides the greater development efficiencies and higher economic returns, but with higher upfront capital requirements.
Completion of the OFS on the two-stage development remains on track for Q3 2021. The single-stage OFS is now expected to be completed during Q4 2021.
Prospect Managing Director, Sam Hosack, said: “We are excited with the interest from key players in the lithium sector and look forward to working with Azure and Vermilion to find the right long term partner for the funding and development of the Arcadia Mine.”