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- Arcadia Minerals (AM7) locks away funding of at least US$7 million (A$11 million) at its Swanson tantalum project in Namibia
- AM7 holds an 80 per cent interest in Orange River Pegmatite (ORP), which entered a subscription agreement with HeiBei to put Swanson into a “steady state of production”
- In return, HeBei will receive a 38 per cent interest in ORP upon fulfilling its obligations
- HeiBei will construct a plant and execute mine development and commissioning of a multi-gravity separation plant at Swanson
- Shares in AM7 are down 5.56 per cent and trading at 17 cents at 3:45 pm AEST
Diversified battery metals explorer Arcadia Minerals (AM7) has locked away funding of at least US$7 million (A$11 million) at its Swanson tantalum project in Namibia.
The company holds 80 per cent of the issued shares in Orange River Pegmatite (ORP), which entered a subscription agreement with HeBei whereby it place Swanson in a “steady state of production”.
In return, Arcadia announced HeBei would receive shares equal to 38 per cent of the issued share capital of ORP.
AM7 Executive Chair Jurie Wessels said it was pleasing to complete negotiations spanning back to November of 2022.
“We are very pleased negotiations are concluded, and that the company will be joining forces with HeBei on the development of the Swanson project,” he said.
“Over the final months of negotiations and site visits we’ve been able to forge a mutually beneficial understanding with the principals of HeBei, which bodes well for successful completion of construction.
“In addition, the synergies that may arise from working with our neighbour, who also owns the nearby Homestead tantalite mine, is expected to open other opportunities for Hebei and Arcadia in the area, including off-take discussions with several off-take parties with respect to the initial production capacity of the Swanson project,” Mr Wessels added.
Through this transaction, the announced HeBei would construct a plant and execute mine development and commissioning of a multi-gravity separation plant (MGS).
The plant is designed to receive around 20,000 tonnes of feed per month, with production expected by the first quarter of 2025.
Arcadia announced it would retain a 49.6 per cent interest in the Swanson project following construction and commissioning, while also retaining an 80 per cent interest in its nickel-PGE and hard rock pegmatite exploration licences.
Shares in AM7 were down 5.56 per cent and trading at 17 cents at 3:45 pm AEST.
