Prospect Resources

US$378m sale of Prospect's 87% interest in the Arcadia Lithium Project

April 2022

Prospect Resources Limited , an ASX-listed resources company focused on the exploration and development of battery and electrification related mining projects in Zimbabwe and the broader sub-Saharan African region, has completed the sale of its 87% interest in the Arcadia Lithium Project to Zhejiang Huayou Cobalt Co., Limited (Huayou) for upfront cash consideration of approximately US$378 million.

Huayou is a leading Chinese new energy materials producer with three major business segments (1) research, development and production of cathode materials, (2) research, development and production of battery precursor, and (3) development of battery metals resources. Huayou is listed on the Shanghai Stock Exchange with a market capitalisation of approximately US$22 billion. Huayou continues to execute on its proactive business development strategy to build a new energy materials business division, which includes significant investments in the lithium resources sector. Huayou has been operating two copper and cobalt mines in the Democratic Republic of Congo since 2007 and is investing in four nickel and cobalt projects in Indonesia with an expected annual production of 255kt of nickel and 20kt of cobalt by 2024.

The transaction was first announced on 23 December 2021 and following satisfaction of all conditions precedent, completed on 20 April 2022. Huayou also contemporaneously acquired the remaining 13% of the project from local Zimbabwean interests.