Prospect Resources signs lithium offtake MoU with Belgian firm Sibelco

ASX-listed Prospect Resources has signed a memorandum of understanding (MoU) with Belgian industrial minerals giant Sibelco for the offtake of its lithium product from the Arcadia project in Zimbabwe.

The MoU will afford the two companies approximately a month and a half to negotiate the terms of the offtake agreement for Prospect’s ultra-low iron petalite product, ahead of a potential agreement on June 1st.

While Prospect and Sibelco have agreed not to deal with any other party in relation to the supply of ultra-low iron petalite, nothing in the MoU prohibits Prospect from continuing discussions with its current MoU partner Uranium One Group.

“I am pleased to announce that we have signed a MoU with Sibelco for Arcadia’s premium ultra-low iron petalite. Sibelco is the largest distributor of ultra-low iron petalite in Europe and possibly the world,” said Prospect executive chairman Hugh Warner.

“It is a significant blue chip European customer with annual turnover of some €3.5 billion. Once in production, Prospect will be the largest ultra-low iron petalite producer in the world,” he said.

Prospect’s flagship Arcadia project is being developed on the outskirts of Harare in Zimbabwe and contains 37.4 million tonnes of ore in reserve at 1.22% lithium.