- Prospect Resources (PSC) has received subscriptions to raise $6 million
- More than 46.1 million new shares will now be issued to sophisticated and professional investors at 1.3 cents each
- Prospect will use the funds to develop a pilot plant to produce low iron spodumene and high purity petalite
- The money will also be used to undertake a front end engineering design (FEED) for its Arcadia Lithium Project in Zimbabwe
- Prospect is down 10.5 per cent on the market and shares are trading for 17 cents each
Prospect Resources (PSC) has received subscriptions to raise $6 million.
On October 12, the company entered a two-day trading halt but did not announce how much it would be raising or what the funds will be used for.
The funds will be raised through the issue of 46,153,847 new shares at 1.3 cents to sophisticated and professional investors.
Prospect will use the funds to develop a pilot plant to produce low iron spodumene and high purity petalite, and undertake a front end engineering design (FEED) for its Arcadia Lithium Project in Zimbabwe.
“This transformation growth capital will be deployed prudently on advancing the Arcadia Lithium Project,” Managing Director Sam Hosack said.
“Arcadia is in a unique position, as it is the only lithium deposit that can produce in the lowest quartile both low iron spodumene for the electric vehicle market and high purity petalite lithium concentrates for the glass and ceramics markets,” he added.
Further, Viriathus Capital acted as sole Lead Manager and worked with Fresh Equities who helped with $5.5 million in cornerstone support.
“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,” Sam concluded.
Prospect is down 10.5 per cent on the market and shares are trading for 17 cents each at 12:14 pm AEDT.