By Almot Maqolo.
HARARE, Zimbabwe (News of The South)- Australian lithium developer, Prospect Resources Limited (PRL) says it raised about A$2 million after successfully completing a rights issue.
The miner that is developing the Arcadia Lithium project near Harare, says proceeds raised from rights issue will be used by the company for project development, progression of due diligence with Afreximbank, progress of on-going off-take discussions, expenses of the offer and for general working capital purposes.
The rights issue was heavily supported by major shareholders, board of directors and management.
“It is clear that COVID-19 has substantially reshaped the global landscape, not only for investors, but particularly new opportunities within the clean energy supply chain. This shifting focus towards clean energy minerals such as lithium has attracted enormous awareness as the drop in airborne pollution during lockdown has reinforced the mechanism to reduce emissions, we need to reduce our dependence on fossil fuels,” PRL Managing Director Sam Hosack said.
“I think it is worth reminding shareholders of what we have at Arcadia because whilst global markets have dropped, the Arcadia asset has not changed, and it is still one of the largest undeveloped lithium deposits in the world.”
Arcadia is in a unique position, as it is the only lithium asset that will produce both low iron spodumene for the electric vehicle market and ultra-low iron petalite lithium concentrates for the glass and ceramics markets.
The development of the miner’s Arcadia Lithium Project is key to Prospect’s future fortunes and will establish Zimbabwe among the top lithium producers in the world. The project is the largest lithium deposit in Africa comprising 808 000 tonnes of lithium oxide.
Previously, Prospect Resources announced that it is selling its business in the Democratic Republic of Congo to focus on its Arcadia lithium project in Zimbabwe.
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