Australian Stock Exchange-listed mining and exploration junior Prospect Resources has received firm commitments for A$18 million in new equity proceeds via an institutional placement of 45 million new ordinary shares, funds raised from the Placement are to be principally used for advancing the development of the Arcadia Lithium Project in Goromonzi.
According to Prospect Resources Managing Director Sam Hosack said the company was happy with the support it received. Hosack said that funds raised from the Placement are to be principally used for, Advancing development of the Arcadia Lithium Project (Arcadia or the Project) through Front End Engineering and Design (FEED), to undertake early works and secure long lead items; Advancing the current strategic partnership process; Undertaking further regional exploration and development activities; and General working capital purposes.
The Arcadia Lithium Project is projected by the Minister of Mines and Mining Development Hon Winston Chitando to be one of the biggest US$0.5 Billion lithium annual revenue generators by 2023.
Hosack said that the Placement was strongly supported by new Australian and international institutional investors and the Company’s largest shareholder Eagle Eye Asset Holdings Pty Ltd.
“We are very pleased with the strong support received for the placement as we look to accelerate the Arcadia Project. We thank our existing shareholders for their ongoing support and welcome a number of new, high-quality institutional investors to our register. We believe the size and depth of the interest received for this raising is a robust endorsement of Prospect’s management team and development strategy for the Arcadia Project.”
“We are working hard to complete the Direct Optimised Feasibility Study on the Arcadia Project during the current quarter. As previously flagged, the direct development route to 2.4 Mtpa throughput is the key focus of Prospect and the counterparties engaged in our current strategic partnership process.”
“This Placement provides us the flexibility to progress the project, select the best possible partner while also allowing us to pursue growth opportunities for REE and lithium resources, particularly if we were able to secure additional feedstock for Arcadia’s future,” Hosack said.