In an effort to create employment for Zimbabweans, AUSTRALIA Stock Exchange (ASX)-listed mining firm, Prospect Resources has allocated a further US$5 million into Arcadia Mine following an overwhelming response to its fundraising initiative announced last week.
The firm has committed to help suffering Zimbabweans after learning that over half of the country’s population cannot sustain a standard living as compared to other countries. The firm is therefore currently one of the most promising lithium projects in Zimbabwe.
Following a boom in demand on the international markets in the past six years in Zimbabwe, at least four multinationals are at various stages of developing mines.
Arcadia has been under development for about three years. The funds further donated intend to build houses for the future employees. Altogether, the mining houses are said to require about US$300 million to bring their operations to full capacity.
After learning of the projects taking place in Zimbabwe, Australia-based resources firms raised about US$11 million for Zimbabwean projects within one month.
In a shareholder update released after the transaction, Hosack said Prospect was “pleased to have received such strong support from our largest shareholder and also welcome a number of new domestic and international institutional investors onto the Prospect register”.
“The funds raised will be used to complete the…acquisition of a further 17% interest in the Arcadia lithium project, as well as advance the development funding process following the optimised feasibility study and pilot plant operation,” Prospect said.