Lithium mining firm Prospect Resources says it has received subscriptions for approximately 41.9 million new ordinary shares at A$0.155 per share to raise A$6.5 million before costs, to underpin the continued advancement of the Arcadia Lithium Project near Goromonzi on the outskirts of the capital.
• Commitments received to raise A$6.5m before costs, to advance the Arcadia Lithium Project
• Placement strongly supported by the major shareholder, existing institutional shareholders, new international and domestic institutions, and from the Board and Management team
• Placement proceeds to be used to complete acquisition of additional 17% project equity in Arcadia, progress the project development funding process and for working capital purposes
Prospect’s Managing Director, Sam Hosack, said they are pleased to have received such strong support from our largest shareholder and also welcome a number of new domestic and international institutional investors onto the Prospect register.
“The funds raised will be used to complete the highly accretive acquisition of a further 17% interest in the Arcadia Lithium Project, as well as advance the development funding process following the Optimised Feasibility Study and pilot plant operation,” he said.
“The need for further, high-quality lithium projects to be developed in the face of a looming critical shortage in lithium-ion battery materials is becoming increasingly evident to industry and investment markets.”
He added that: “Arcadia is in the unique position of being the only lithium deposit that is expected to operate in the lowest cost quartile via production of both low iron spodumene concentrate for the lithium-ion battery market and high purity petalite lithium concentrate for the glass and ceramics markets.” – Harare