Prospect Resources receives funds to contribute towards the Arcadia Lithium project
Prospect Resources has received subscriptions for approximately $41.9 million new ordinary shares at $0.155 per share to raise $6.5 million before costs (placement), to support the progress of the Arcadia Lithium project.
By Shantel Chisango
Prospect Managing Director, Sam Hosack expressed his joy with the support the company received from their largest shareholder, and he stated that the funds will be put towards the finishing of the Arcadia Lithium project.
“We 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 further added that there is a greater need to develop high-quality lithium projects considering that there is a critical shortage of lithium-ion battery materials.
“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.”
Sam Hosack further stated that Arcadia has greater chances of becoming the only deposit that operates in the lowest quartile via production of both low iron spodumene concentrate for the lithium-ion battery market.
“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,” said Hosack.
Prospect states that it recognizes the rapid transition toward global adoption of electric vehicles represents a clear opportunity to advance the availability of high-quality battery-grade lithium sources and to accelerate the Arcadia Lithium Project through to development.
The funds received are to be used towards the acquisition of Farvic’s 17% interest in the Arcadia Lithium Project, increasing Prospect’s total project interest to 87%.
They shall also contribute towards the progression of the project development funding process, including discussions with several potential strategic counterparties operating at various levels within the lithium-ion battery value chain; and general working capital to negotiate the best possible terms for the progression of the Arcadia project for the benefit of shareholders.
The Placement enables Prospect to complete the Farvic transaction, assess pilot plant results with customers, and provide potential financiers and partners with adequate time to fully assess the Optimised Feasibility Study results.