Prospect Resources Ltd has announced that it has received subscriptions for approximately 41.9 million new ordinary shares at US $0.12 per share to raise US $5m before costs, to underpin the continued advancement of the Arcadia Lithium Project.
According to Prospect’s Managing Director, 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. “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,” he said.
“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. 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 markets,” he added.
Settlement of the New Shares is scheduled to occur on 22 April 2021, with quotation expected to take place on 23 April 2021. Settlement of Mr Wheatley’s New Shares will occur following shareholder approval, which is targeted to occur in Q2 2021, where the Company, at the same General Meeting, also expects to seek shareholder approval to complete the Farvic transaction.
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Use of Funds
The Company recognises that the rapid transition toward global adoption of electric vehicles
represents a clear opportunity to advance the availability of high-quality battery grade lithium sources
and to accelerate the Arcadia Lithium Project through to development.
The Placement enables Prospect to complete the Farvic transaction, assess pilot plant results with customers and provide potential financiers and partners with adequate time to fully assess the Optimised Feasibility Study results. The additional funding will also provide the Company with additional working capital to negotiate the best possible terms for the progression of the Arcadia project for the benefit of all shareholders.
