- Prospect Resources (PSC) receives firm commitments to undertake an $18 million institutional placement
- Approximately 45 million new shares will now be issue to institutional and sophisticated investors at 40 cents each
- Prospect will use the money to advance the development of the Arcadia Lithium Project and advance the current strategic partnership process
- The placement begins the process of bringing Arcadia into production as quickly as possible as well strengthening Prospect’s balance sheet
- Prospect is down 3.41 per cent on the market with shares trading at 42.5 cents
Prospect Resources (PSC) has received firm commitments to undertake an $18 million institutional placement.
The company entered a trading halt on October 27 but did not disclose how much it intended to raise or what it would use the funds for.
Approximately 45 million new shares will now be issued to institutional and sophisticated investors at 40 cents each.
This price represents a 9.1 per cent discount to Prospect’s closing price of 44 cents on October 26, and a 12.8 per cent discount to the five-day volume-weighted average price.
Shares are expected to settle on November 4 and begin trading on the ASX on November 5.
Prospect will primarily use the money to advance the development of its Arcadia Lithium Project, undertake regional exploration and development activities, and advance the current strategic partnership process.
The placement begins the process of bringing Arcadia into production as quickly as possible, as well strengthening Prospect’s balance sheet.
Managing Director Sam Hosack went into further depth on what the money will be used for.
“We are working hard to complete the direct optimised feasibility study on the Arcadia Project during the current quarter,” Mr Hosack said.
“This placement provides us the flexibility to progress the project, select the best possible partner while also allowing us to pursue growth opportunities for rare earth elements (REE) and lithium resources, particularly if we were able to secure additional feedstock for Arcadia’s future.”
Prospect was down 3.41 per cent on the market with shares trading at 42.5 cents at 11:55 am AEDT.