By Business Reporter – Thursday 15 October 2020
HARARE (Mining Index) – FOLLOWING demand from institutional investors, Prospect Resources Ltd (ASX: PSC, FRA:5E8) has received subscriptions for 46,153,847 new ordinary shares at A$0.13 per share to raise A$6million before costs through a private placement for the development of its Arcadia Lithium Project in Zimbabwe.
The shares will be issued on Tuesday, 20 October 2020.
The pilot plant is expected to produce low iron spodumene and high purity petalite samples for glass and ceramics and initiate a Front End Engineering Design (FEED).
Funds raised from the placement will be used towards production of low iron spodumene and high purity petalite samples for downstream off-takers and customers through the design, supply and operation of a flotation pilot plant; undertake a FEED for Prospect’s Arcadia Lithium Project; project finance activities and working capital.
Prospect’s Managing Director, Sam Hosack, said “This transformation growth capital will be deployed prudently on advancing the Arcadia Lithium Project. The strong demand from a number of institutional investors is in support of Prospects plan to get into production,”
“Arcadia is in a unique position, as it is the only lithium deposit that can produce in the lowest quartile both low iron spodumene for the electric vehicle market and high purity petalite lithium concentrates for the glass & ceramics markets.”
“Prospect is pleased with this successful placement by Viriathus, enabling the business to build on its momentum as we complete the qualification process with glass & ceramics customers, continuing to advance our project economics as we target near term production.”
Viriathus Capital acted as sole Lead Manager and worked with Fresh Equities who assisted with cornerstone support of A$5.5m.
The Arcadia Lithium Project is the 7th largest global hard rock lithium asset with a target annual production of 100,000t of premium priced ultra-low iron petalite. ENDS// www.miningindex.co.zw
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