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Prospect raises funds for Zim lithium

29th October 2021

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

     

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PERTH (miningweekly.com) – Lithium developer Prospect Resources has completed an A$18-million share placement to fund work at its Arcadia lithium project, in Zimbabwe.

The ASX-listed company on Friday said it had received firm commitments for the placement of 45-million new shares to institutional and sophisticated investors, at an issue price of 40c a share.

The issue price represented a 9.1% discount to Prospect’s last closing price, and a 12.8% discount to the company’s five-day volume weighted average share price.

“We are very pleased with the strong support received for the placement as we look to accelerate the Arcadia project. We thank our existing shareholders for their ongoing support and welcome a number of new, high-quality institutional investors to our register. We believe the size and depth of the interest received for this raising is a robust endorsement of Prospect’s management team and development strategy for the Arcadia project,” said Prospect MD Sam Hosack.

“We are working hard to complete the direct optimised feasibility study on the Arcadia project during the current quarter. As previously flagged, the direct development route to 2.4-million tonnes a year throughput is the key focus of Prospect and the counterparties engaged in our current strategic partnership process.

“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 and lithium resources, particularly if we were able to secure additional feedstock for Arcadia’s future.”

Edited by Creamer Media Reporter

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