Prospect Resources picks advisor for sale of Zimbabwe lithium mine to Uranium One

(Reuters) Australian-listed Prospect Resources Limited, Subiaco, Australia, said on Monday it had picked Renaissance Securities Capital, a leading independent investment bank, as its exclusive financial advisor for the possible sale of shares in Zimbabwe’s Arcadia Lithium mine to Russian energy firm Uranium One Inc.

Uranium One is a Canadian uranium mining company with headquarters in Toronto, Ontario. Since 2013 it is a wholly owned subsidiary of the Russian state-owned nuclear corporation Rosatom. Uranium One 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 license 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.

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