ASX-listed Prospect Resources has raised $10 million (before costs) in an oversubscribed placement of 166 million shares at an issue price of 6c per share.

The proceeds from the placement are expected to enable Prospect Resources to accelerate the development of the Arcadia lithium project in Zimbabwe and take advantage of the support offered by the new Zimbabwe government under its Rapid Response Initiative.

The proceeds of the placement will also be used to progress exploration at the Good Days lithium project (under option) and also investigate and possibly acquire additional lithium and cobalt projects, as well as supplement general working capital.

Hunter Capital Advisors acted as sole lead manager to the issue which is scheduled to settle in full on Monday 5 February 2018.

Arcadia project at a glance

The Arcadia lithium project is located approximately 38 km east of Harare, Zimbabwe in the high veld close to the long established Arcturus gold mine.

Arcadia occupies an area of more than 14 km2 and consists of some historical lithium and beryl workings within an existing agricultural area partially surrounded by a number of hills rising some 50 m above the central basin floor.

The project’s elevation ranges between 1300 and 1420 m above mean sea level straddling the Thorn Vlei, Grazely and Lonely Park Estate Farms. The project is located close to major highways and railheads, with the Beira Port being less than 450km away by rail/road transport. The proximity to Harare as a source of professional, skilled and semi-skilled labour, engineering skills and its location as a regional transport and services hub adds to the project’s economics.