African lithium company, Prospect Resources has appointed African Export-Import Bank, or Afreximbank, to arrange and manage the primary syndication of a US$143 million project finance debt facility.
Afreximbank is proposing to fund and hold $75 million of the facility. The parties have also agreed a non-binding indicative debt facility term sheet.
The appointment of Afreximbank as mandated lead arranger is a critical milestone in the financing of the Arcadia lithium project in Zimbabwe. The parties will now undertake further detailed due diligence and negotiate the final facility agreements. Execution of the facility agreements will be subject to Afreximbank’s further due diligence and credit approvals and drawdown will be subject to satisfaction of various conditions precedent to be included in the agreements.
“We are very pleased to have agreed this mandate with Afreximbank, who have significant experience lending into Zimbabwe,” saysProspect Resource executive chairman Hugh Warner.
“The company’s Arcadia lithium project is expected to be the first African lithium mine financed by Afreximbank and the first African lithium mine to attract debt finance. We welcome Afreximbank as a long-term partner and look forward to working together to deliver a tier one lithium project.”