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PROSPECT RESOURCES LIMITED — Capital/Financing Update 2019
Jun 16, 2019
65617_rns_2019-06-16_ccbd9205-420f-4c04-b41f-060f5537ce31.pdf
Capital/Financing Update
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OPTION EXERCISE AND SHARE PLACEMENT
Prospect Resources Ltd (“ Prospect” or “the Company” ) is pleased to announce it has raised A$5,171,000 through the exercise of 7.84m options to raise A$1.176m and via a placement of 23.5m fully paid ordinary shares to raise A$3.995m. The funds, net of capital raising costs, will be utilised for general working capital.
Share Option Exercise and Share Issue
The Company has received valid exercise notices for 7.84 million post-consolidation options, each exercisable at 15c per option (post consolidation). Accordingly, 7.84 million fully paid ordinary shares will be allotted ( Options Shares ).
Details of options exercised:
| Options (Expiry 15 June 2019) | Options (post consolidation) |
Subscription Amount A$ (@15cper option) |
|---|---|---|
| Options Exercised – Total | 7,840,000 | $1,176,000 |
| - Directors & Management |
5,340,000 | $801,000 |
| - Other Investors |
2,500,000 | $375,000 |
| Option expired – unexercised | 3,660,000 | $Nil |
Share Placement
The Company will place 23.5m post consolidation fully paid ordinary shares ( Placement Shares ) at 17c per share to raise A$3,995,000. The Placement Shares will be issued by utilising the Company’s capacity under ASX Listing Rule 7.1.
The Placement Shares and Options Shares are anticipated to be issued on 17 June 2019.
Hugh Warner, Chairman of Prospect said “The Directors and management team are confident in the success of progressing the Arcadia Lithium Project and have demonstrated this by exercising the options. The team are focused on rapidly and cost effectively developing Arcadia to become Africa’s leading lithium producer”.
Note: On 11 June 2019, the Company’s shareholders approved the consolidation of its share capital on a 1 new share for every existing share basis. All reference to share and options within this announcement are to postconsolidation numbers. The shares commenced trading on a post consolidation basis on 13 June 2019.
ENDS
Prospect Resources Limited | ACN 124 354 329 | W: prospectresources.com.au | Phone: +61 8 9217 3300
Suite 6, 245 Churchill Ave. Subiaco WA 6008 | Email: [email protected]
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Africa’s leading Well positioned Strong Project Path forward to Offtake Agreement battery mineral Lithium Resource Economics Financing, in place and company in regard to both demonstrated in Development and positioned to Scale and Grade DFS Production capitalise on Market Demand
For further information, please contact:
Nicholas Rathjen General Manager, Corporate Affairs [email protected]
About Prospect Resources Limited (ASX: PSC)
Prospect Resources Limited (ASX:PSC) is an ASX listed lithium company based in Perth with operations in Zimbabwe. Prospect’s flagship project is the Arcadia Lithium Project located on the outskirts of Harare in Zimbabwe. The Arcadia Lithium Project represents a globally significant hard rock lithium resource and is being rapidly developed by Prospect’s experienced team, focusing on near term production of petalite and spodumene concentrates.
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 United States currency, unless otherwise stated.
Investors should make and rely upon their own enquiries before deciding to acquire or deal in the Company’s securities.
Prospect Resources Limited | ACN 124 354 329 | W: prospectresources.com.au | Phone: +61 8 9217 3300
Suite 6, 245 Churchill Ave. Subiaco WA 6008 | Email: [email protected]
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