Prospect Resources has provided an update on the acquisition of an additional interest in the Arcadia Lithium Mine - Zimbabwe.
On 11 June 2019, shareholders approved the acquisition of an additional 17% interest in the Arcadia Lithium Mine, subject to Zimbabwe regulatory approval.
Prospect Resources has received all but one Zimbabwean regulatory approval – which it expects to receive in due course.
Accordingly, the Company sought and was granted a waiver from ASX Listing Rule 14.7 so that it may delay the issue of the consideration shares until 10 January 2020.
The company has obtained a waiver from ASX Listing Rule 14.7 to permit it to issue 9,479,680 fully paid ordinary shares to Farvic Consolidated Mines later than one month after 11 June 2019, being the date shareholders approved the issue of the Consolidated Shares to Farvic at an General Meeting.
Prospect sought the waiver as it is unable to issue the Consideration Shares to Farvic within 1 month of the General Meeting due to delays in receiving Zimbabwean regulatory approval for the underlying transaction to which the Consideration Shares relate.
The reason for the delay is that transaction may only be completed with the approval of Zimbabwe Revenue Authority (ZIMRA) and the agreement was expressed to be subject to regulatory consent.
Farvic has made a submission to ZIMRA but it has not yet been granted the necessary clearances.
The ZIMRA clearance certificate is the only remaining consent required to complete the transaction.
The company is confident that ZIMRA will, in due course, issue the certificate.