PSC returns high grade lithium oxide results, lands $16m placement
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Channel chip sampling from Prospect Resources’ (ASX:PSC) Arcadia Pit mine has returned high grade lithium oxide results.
From the total 375 samples collected, the initial 207 samples found:
- 6 samples return > 4% Li2O
- 22 samples return > 3% Li2O
- 74 samples return > 2% Li2O
- Peak grade is 4.37% Li2O
The samples were collected in 1-2m intervals on the central eastern side of the historic Arcadia pit face.
PSC is still awaiting the results on the final 168 samples.
In addition, PSC has raised $16m subject to shareholder approval.
The placement consists of 280m shares to be issued at 5c per share to overseas sophisticated investors, to raise $14m and an additional $2m to be raised via the issue of 40m shares at 5c per share.
A significant premium to the 20 day VWAP of 3.6c.
Proceeds of the placement will be used to:
- fast track drilling at the Arcadia Lithium deposit, approx. 35kms north east of Harare;
- accelerate mine design, plant design and feasibility studies for the Arcadia Lithium deposit;
- enable the Company to order long lead time items of plant for the Arcadia Lithium deposit;
- fast track exploration at the God’s Gift Lithium deposit;
- accelerate gold production at the Gwanda East gold camp, south east of Bulawayo;
- provide the Company with capacity to make additional strategic acquisitions, particularly within the lithium, graphite and cobalt sectors; and
- supplement general working capital.
Shareholder approval on the capital raising is set to take place Friday 22nd July 2016 at the extraordinary general meeting.
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