Australian explorer Prospect Resources Ltd. signed an indicative term sheet mandating African Export-Import Bank to arrange a US$143 million syndicated debt facility for the Arcadia lithium project in Zimbabwe.

The bank plans to fund US$75 million of the facility. The two parties are undertaking further due diligence and will negotiate the final terms, according to a Dec. 17 news release.

Prospect Resources secured a power supply deal and an export tax exemption for Arcadia earlier in December that was valued at US$645 million in a recent definitive feasibility study.