ASX-listed African lithium developer Prospect Resources has received subscriptions for 46.15 million new ordinary shares at A$0.13 per share to raise A$6 million before costs.
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 front-end engineering design (FEED) for Prospect Resources’ Arcadia lithium project in Zimbabwe; project finance activities and working capital.
Viriathus Capital acted as sole lead manager and worked with Fresh Equities who assisted with cornerstone support of A$5.5 million. The shares will be issued on 20 October 2020.
“This transformation growth capital will be deployed prudently on advancing the Arcadia project,” says Prospect Resources MD Sam Hosack.
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,” says Hosack.
“We are 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,” he concludes.
Prospect Resources MD Sam Hosack will be speaking in this live panel discussion, sharing his insights on the untapped potential in Zimbabwe for the junior sector. To join the webinar, click here