- The funds will be used to complete acquisition of a further 17% interest in the project
- Arcadia boasts an ore reserve of 37.4 million tonnes
- Perth based engineering consulting group, Lycopodium Ltd undertaking Feasibility Study
Australia Stock Exchange-listed African Lithium developer, Prospect Resources has raised A$6.5 million (about US$5.032 million) in a share placement to underpin the continued advancement of its flagship project, the Arcadia lithium project, in Zimbabwe.
A hard rock lithium project just outside the capital of Harare, Arcadia boasts an ore reserve of 37.4 million tonnes at 1.22% lithium oxide and 121 parts per million tantalum pentoxide for 457,000t of lithium oxide and 10 million pounds of tantalum pentoxide.
In an announcement on Friday 16 April 2021, the Company said that it has received subscriptions for approximately 41.9 million new ordinary shares at A$0.155 per share to raise A$6.5 million before costs (Placement) for the advancement of the project.
Prospect’s managing director, Sam Hosack said: “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 Project register.”
“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. 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,” said Hosack.
Key planned uses of the Placement funds include:
▪ Acquisition of Farvic’s 17% interest in the Arcadia Lithium Project, increasing Prospect’s total project interest to 87% (currently at 70%);
▪ Progression of the project development funding process, including discussions with several
potential strategic counterparties operating at various levels within the lithium-ion battery
value chain; and
▪ General working capital.
An updated definitive feasibility study showed that the 2.4-million-tonne-a-year (updated from an earlier 1.2Mtpa) project would have a mine life of 15.5 years, with the capital cost estimated at $165-million.
That study, being undertaken by Perth-based engineering consulting group, Lycopodium Ltd, is the result of a strategic review designed to clear a pathway to the company’s goal of near-term production.
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