PERTH (miningweekly.com) – Lithium hopeful Prospect Resources will raise A$6.5-million in a share placement to advance work at its Arcadia lithium project, in Zimbabwe.
The company has received subscriptions for the placement of some 41.9-million shares, at a price of 15.5c each from institutional and sophisticated investors.
The placement has been strongly supported by the company’s largest shareholder, as well as from existing institutional shareholders, and new international and domestic institutions.
“We are pleased to have received such strong support from our largest shareholder and also welcome a number of new domestic and international institutional investors onto the Prospect register,” said MD Sam Hosack.
“The funds raised will be used to complete the highly accretive acquisition of a further 17% interest in the Arcadia lithium project, as well as advance the development funding process following the optimised feasibility study and pilot plant operation.
“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,” said Hosack.
“Arcadia is in the unique position of being the only lithium deposit that is expected to operate in the lowest cost quartile via production of both low iron spodumene concentrate for the lithium-ion battery market and high purity petalite lithium concentrate for the glass and ceramics market.”
An updated definitive feasibility study previously showed that the 2.4-million-tonne-a-year project would have a mine life of 15.5 years, with the capital cost estimated at $165-million.