- Arcadia Minerals (AM7) releases the definitive feasibility study (DFS) completed over its Swanson tantalum-lithium project in Namibia
- The DFS revealed the project to be a “significant” cash generator for the company, highlighting an attributable free cash flow of around $3.2 million per year for AM7
- It also showed that the surrounding licences of Swanson holds the promise of extending the project’s production lifetime by eight years
- The news coincides with the funding boost of US$7 million by HeiBei – putting Swanson into a “steady state of production”
- Shares in AM7 were up 7.14 per cent and trading at 15 cents at 1:50 pm AEST
Arcadia Minerals (AM7) has released the definitive feasibility study (DFS) completed over its Swanson tantalum-lithium project in Namibia.
The DFS confirmed the project to be a “significant” cash generator for the company, something which Executive Chair Jurie Wessels believed would be the case.
“We always expected it to be a cash generator. Our focus is on other projects, on exploration – that’s what we do – and we’re very pleased with the fact that we could actually get someone else that knows mining to put up this plant and do the mining for us to produce a cash component for the company,” Mr Wessles told The Market Herald.
The announcement coincides with the recently secured funding boost for construction at the project, locking away funding of at least US$7 million (A$11 million) at Swanson from HeiBei, who will put Swanson into a “steady state of production”.
The DFS highlighted attributable free cash flow of around $3.2 million Arcadia should receive per year, while it also showed the surrounding licenses of Swanson hold the promise of extending the project’s production lifetime by eight years.
“The compelling financial metrics of the DFS tied with the comprehensive construction funding capacity gained from the recently announced transaction with Hebei Construction underlines the significant value proposition of Arcadia and validates our ambitions of establishing a cash-generative enterprise to fund exploration objectives at our potentially company transforming assets,” Mr Wessels added.
Construction is expected to take 18 months, with the first production expected by the first quarter of 2025.
Shares in AM7 were up 7.14 per cent and trading at 15 cents at 1:50 pm AEST.