Australia-listed mining group completes placement of US$13,5m

PROSPECT Resources has completed the placement of 18 million Australian dollars equivalent to about US$13,5 million with part of that funding going towards advancement of the Arcadia Lithium project.

Recently, the Australia-listed mining group, which is developing the Arcadia Lithium project in Goromonzi, near Harare, announced the delivery of the first 25-tonne container of technical grade petalite concentrate to its offtake partner, Sibelco N.V. The delivery of the bulk consignment followed the completion of the lithium project’s
pilot plant.

In a statement, Prospect expressed pleasure for receiving firm commitments for A$18 million in new equity proceeds (before costs) via an institutional placement of 45 million new ordinary shares to institutional and sophisticated investors at an issue price of A$0,40 per share.

The placement was strongly supported by new Australian and international institutional investors and the company’s largest shareholder, Eagle Eye Asset Holdings Pte Ltd.

“Funds raised from the placement are to be principally used for advancing development of the Arcadia Lithium project through Front End Engineering and Design (FEED), to undertake early works and secure long lead items; advancing the current strategic partnership process; undertaking further regional exploration and development activities; and general working capital purposes,” said the mining group.

It said the placement begins the process of funding the project to bring Arcadia into production as quickly as possible, while also strengthening the company’s balance sheet to assist in securing a strategic partner on the best possible terms.

Prospect managing director, Mr Sam Hosack, was quoted as saying: “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.”

He said they were working hard to complete the Direct Optimised Feasibility Study on the Arcadia project during this quarter.

The Optimised Feasibility Study (OFS) for Arcadia was advanced on a dual-track basis by leading engineering consulting group, Lycopodium Minerals.

“As previously flagged, the direct development route to 2,4 tonnes per annum throughput is the key focus of Prospect and the counterparties engaged in our current strategic partnership process,” said Mr Hosack.”

“This placement provides us the flexibility to progress the project, select the best possible partner while also allowing us to pursue growth opportunities for REE and lithium resources, particularly if we were able to secure additional feedstock for Arcadia’s future.”

In August this year, Prospect Resources, which owns 87 percent shareholding in the Arcadia Lithium operation announced the commencement of a structured process to allow interested parties to come up with proposals to fully fund the project.

This was after the mining group announced the completion of construction and commissioning of the Arcadia Lithium pilot plant project marking the commencement of production. – The Chronicle