Zim Lithium project gets funding boost

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HARARE – Australian based mining firm  Prospect Resources on Wednesday said it has raised $10 million via a  private placement of 166 million shares, which will be used to  accelerate development of its Arcadia Lithium Mine, located about 38  kilometers east of the capital, near the long established Acturus Mine  in Zimbabwe.

A private placement is a sale of stocks, bonds, or securities directly  to a private investor(s), rather than as part of a public offering.

“Prospect Resources Limited is pleased to announce the completion of an  oversubscribed placement of 166 million shares at an issue price of 6  cents per share to institutional and sophisticated investors, to raise $10 million (before costs),” the company said in an update.

“The proceeds from the Placement are expected to enable Prospect to  accelerate the development of the Arcadia Lithium Project and take  advantage of the support offered by the new Zimbabwe Government under  its Rapid Response Initiative.”

Prospect said the proceeds would also be used to investigate and  possibly acquire additional lithium and cobalt projects and supplement  general working capital.

The Zimbabwe government has identified the Arcadia lithium deposit as a  priority project under the first 100 days Rapid Results Initiative.

In June 2017, the company completed a pre-feasibility study and is now  focusing on securing off-take and funding plans for development of  Arcadia towards production, anticipated in the third quarter of 2018.

Lithium and its compounds have several industrial applications,  including heat-resistant glass and ceramics, lithium grease lubricants,  flux additives for iron, steel and aluminium production, lithium  batteries, and lithium-ion batteries.

Apart from lithium, Prospect has assets in the gold sub-sector located  across Zimbabwe including the Sally, Bucks Reef and Prestwood Mines in  the Gwanda area of Matabeleland South as well as in the Penhalonga area  of Manicaland. – New Ziana

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