Prospect Resources, which owns 87 per cent shareholding in the Arcadia Lithium operation has completed the placement of 18 million Australian dollars (US$13.5 million).
Part of that funding is going towards the advancement of the Arcadia Lithium project located in Goromonzi near Harare, Zimbabwe, which is considered to be one of the world’s biggest hard rock lithium resources.
The Australia-listed mining group, which is developing the Arcadia Lithium project expressed pleasure for receiving firm commitments for A$18 million in new equity proceeds.
The placement was strongly supported by new Australian and international institutional investors and the company’s largest shareholder, Eagle Eye Asset Holdings Pte Ltd. Said Prospect in a statement:
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.
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, 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 a leading engineering consulting group, Lycopodium Minerals.
In August this year, Prospect 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.
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