- Prospect Resources (PSC) has appointed Renaissance Securities as its exclusive merger and acquisitions advisor in relation to an agreement with Uranium One Group
- Renaissance will provide advice on the memorandum of understanding with Uranium Group, which was struck in December last year
- This agreement is in relation to the potential sale of Prospect’s Arcadia Lithium Project in Zimbabwe
- This MoU has been extended twice and will now expire on August 10, however, Prospect has flagged there is no guarantee for a binding agreement or proposal
- Furthermore, Prospect will not be placing the shortfall in relation to its rights issue
- Company shares are up a slight 1.43 per cent and are trading for 7.1 cents each
Prospect Resources (PSC) has appointed Renaissance Securities as its exclusive financial advisor in relation to an agreement with Uranium One Group.
On December 12 2019, Prospect entered a memorandum of understanding (MoU) with Uranium One, a global energy company and one of the world’s largest uranium producers. The MoU relates to Prospect’s flagship Arcadia Lithium Mine in Zimbabwe.
Uranium One was given a 90-day exclusivity period, however, on March 13, the MoU was extended until April 30.
As the expiry date was looming, the company further extended the MoU term to August 10. Prospect attributed this decision to “logistical challenges facing all companies during the COVID-19 lockdown.”
The MoU discussions are reportedly travelling well, and Renaissance will provide merger and acquisitions advice on the potential sale, directly or indirectly, of Prospect’s Arcadia Lithium Project.
Renaissance is an independent investment bank that provides access to over 50 markets across the world.
The discussions with Uranium One are ongoing, however, there is no guarantee that these discussions or MoU will result in a formal binding agreement or proposal in regards to the Arcadia Lithium Project.
Additionally, Prospect has advised that despite receiving a number of enquiries regarding the placement of the remaining shortfall shares from the rights issue completed in May, it won’t be placing the shortfall. The rights issue is fully closed.
Company shares are up a slight 1.43 per cent and are trading for 7.1 cents each at 10:08 am AEST.