African lithium company,
The proceeds of the placement will be used as working capital in line with our announcement of
Whilst the Company previously advised of its intention to offer a rights issue to shareholders, it was determined that a small placement was a more prudent funding mechanism. This is because of the rapid rise in Prospect's share price over the last 30 days (53% rise) and the expected continued revaluation, due to the positive global sentiment for lithium in general and the corporate activities previously announced. It was deemed that fixing a rights issue price now, may mean a significantly larger dilution to shareholders who are not able to participate in the rights issue due to financial reasons or their jurisdiction.
Prospect Resources Executive Chairman,Hugh Warner , said 'TheMarch 2020 quarter has a number of key initiatives with a clear focus on advancing the Arcadia Lithium project through: 1. off-take discussions of the premium ultra-low iron petalite product for supply intoEurope ,Japan andKorea ; 2. discussions withUranium One Group and 3. project finance discussions withAFREXIM Bank .'
Contact:
Email: nrathjen@prospectresources.com.au
About
About Lithium
Lithium is a soft silvery-white metal which is highly reactive and does not occur in nature in its elemental form. In nature it occurs as compounds within hard rock deposits (such as Arcadia) and salt brines. Lithium and its chemical compounds have a wide range of industrial applications resulting in numerous chemical and technical uses. Lithium has the highest electrochemical potential of all metals, a key property in its role in lithium-ion batteries.
Caution Regarding Forward-Looking Information
This announcement may contain some references to forecasts, estimates, assumptions and other forward-looking statements. Although the Company believes that its expectations, estimates and forecast outcomes are based on reasonable assumptions, it can give no assurance that they will be achieved. They may be affected by a variety of variables and changes in underlying assumptions that are subject to risk factors associated with the nature of the business, which could cause actual results to differ materially from those expressed herein. All references to dollars ($) and cents in this announcement are in
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