Arcadia Minerals Limited has terminated its agreement with HeBei Xinjian Construction CC regarding the Swanson Tantalum Project, opting to seek a new funding partner.
Under the original agreement, signed on May 29, 2023, HeBei Xinjian was to develop mine infrastructure, construct a processing plant, and execute commissioning in exchange for a 38% equity stake in Arcadia’s 80%-owned subsidiary, Orange River Pegmatite (Pty) Ltd. The Chinese company had also committed to investing US$7 million in the project.
The agreement required HeBei Xinjian to build the plant according to Arcadia’s detailed engineering specifications and earn equity only upon delivering a processing plant capable of handling 20,000 tons of ore per month, certified by Arcadia’s engineers.
However, Arcadia Minerals confirmed that only A$620,000 of development funds had been spent by HeBei Xinjian to date, which is considered sunk capital with no repayment obligation.
Additionally, while HeBei Xinjian covered the costs of road construction and site establishment, these assets remain under Orange River Pegmatite’s ownership without any reimbursement obligation.
A critical issue leading to the termination was that processing equipment worth approximately A$2.6 million, reportedly purchased by HeBei Xinjian in China, was never delivered to the mine site, meaning ownership was never transferred to Orange River Pegmatite.
With the termination of the agreement, Arcadia retains its full 80% stake in the project and is now pursuing alternative funding sources to resume mine development.
The delivery of core processing equipment, including multigravity separators and spiral circuits, remains pending due to an outstanding balance of A$548,550 that HeBei Xinjian failed to settle after an initial deposit.
Arcadia has since identified alternative equipment suppliers in Southern Africa and is reassessing project costs, targeting a total plant construction budget of US$9.8 million.
In a January 31, 2025 statement, Arcadia confirmed it has finalized an information memorandum to initiate a competitive bidding process and is in discussions with potential investors with the financial capacity to advance the project on an equity basis.
