Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
Australian-listed Prospect Resources said on Monday it had picked Renaissance Securities Capital as its exclusive financial advisor for the possible sale of shares in Zimbabwe’s Arcadia Lithium mine to Russian energy firm Uranium One.
Uranium One, a unit of Russia’s state-owned nuclear energy firm Rosatom, agreed with Prospect last December to start talks towards buying equity in Arcadia and an offtake agreement.
Zimbabwe is pushing lithium as a major draw for investors as it looks to attract capital to its mining sector.
Prospect said in a statement that Renaissance Securities would advise “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.”
Prospect said discussions with Uranium One were ongoing but there was no guarantee this would lead to a formal binding agreement.
In December, Prospect appointed African Export-Import Bank to arrange and syndicate a $143 million project finance debt facility for the Arcadia lithium project.
(By MacDonald Dzirutwe; Editing by Emelia Sithole-Matarise)
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