- October 15, 2020
- Posted in NEWS
PROSPECT Resources, which is developing the Arcadia lithium project in Zimbabwe, has raised $6 million for developing a pilot plant to produce low iron spodumene and high purity petalite samples.
The Zimbabwe-focused resource commodity group owns the Arcadia Lithium project, near Harare. In August, it announced that assaying results have confirmed the potential to become the world’s only supplier of premium glass and ceramics market.
Prospect said the funding for the intended pilot project at Arcadia was raised through a private placement.
“The company is pleased to announce it has received subscriptions for 46 153 847 new ordinary shares at $0,13 per share to raise $6 million before costs (placement).
“The shares will be issued on Tuesday, 20 October 2020,” it said. Viriathus Capital acted as sole lead manager and worked with Fresh Equities who assisted with cornerstone support of $5,5 million.
“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, project finance activities and working capital,” it said.
Prospect managing director, Mr Sam Hosack, was quoted saying that this transformation growth capital will be deployed prudently on advancing the Arcadia lithium project.
“The strong demand from a number of institutional investors is in support of Prospect’s plan to get into production,” he said.
“Prospect is pleased with this successful placement by Viriathus, enabling the business to build on its momentum as we complete the qualification process with glass and ceramics customers, continuing to advance our project economics as we target near term production.”
Early last year, the Zimbabwe Special Economic Zones Authority (Zimseza) announced that the Arcadia lithium project was set to attract US$165 million in foreign direct investment with potential to generate an estimated US$3 billion income in the first 12 years of operation. It is anticipated that the Arcadia lithium project will create up to 10 000 jobs along the value chain.