- Prospect Resources (PSC) has received subscriptions to undertake a $6.5 million placement
- Roughly 41.3 million new ordinary shares will be issued to institutional and sophisticated investors at 10.5 cents to raise $6.4 million
- This price represents a 16.2 per cent discount to Prospect’s last closing price of 18.5 cents on April 13
- Subject to shareholder approval, the remaining $100,000 will be raised via Non-Executive Chairman Mark Wheatley
- Once received, Prospect will use the funds to advance the Arcadia Lithium Project in Zimbabwe, specifically increasing its interest to 87 per cent
- The money will also be applied to progressing the funding process and undertaking discussions with potential strategic partners
- Prospect is down 8.11 per cent on the market and shares are trading at 17 cents
Prospect Resources (PSC) has received subscriptions to undertake a $6.5 million placement.
The company entered a trading halt on April 14 but did not disclose how much it intended to raise or what it would use the funds for.
Roughly 41.3 million new ordinary shares will be issued to institutional and sophisticated investors at 10.5 cents to raise $6.4 million.
This price represents a 16.2 per cent discount to Prospect’s last closing price of 18.5 cents on April 13.
Subject to shareholder approval, 645,162 new shares will be issued to Non-Executive Chairman Mark Wheatley to raise the remaining $100,000.
Shares are expected to settle on April 22 and begin trading on the ASX on April 23.
Once received, Prospect will use the funds to advance the Arcadia Lithium Project in Zimbabwe, specifically acquiring Farvic’s 17 per cent interest in the project to increase its total holding to 87 per cent.
The money will also be applied to progressing the funding process and undertaking discussions with potential strategic partners.
“The funds raised will be used to complete the highly accretive acquisition of a further 17 per cent interest in the Arcadia Lithium Project, as well as advice the development funding process following the optimised feasibility study and pilot plant operation,” Managing Director Sam Hosack commented.
“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,” he added.
Prospect is down 8.11 per cent on the market and shares are trading at 17 cents at 11:44 am AEST.