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Keeping its resource prospects open, PSC secures funding for future gold production
2 minute read
Prospect Resources (ASX:PSC) intends to complete a $715,000 capital raising by issuing approximately 143m shares at 0.5c per share. The funds will be used for general working capital and to provide the Company with a working capital buffer in anticipation of the commencement of gold production from the Company’s Prestwood Gold Mine.
The historic Prestwood Gold Mine is located approximately 112km south east of Bulawayo in Zimbabwe, and historically produced approximately 499kg of gold (approx. 16,000oz) at 33.1g/t. It is situated within an almost contiguous block of claims covering approximately 25 sq. km. of the gold bearing Gwanda Greenstone Belt.
The $715,000 capital raise is structured in the following way:
- Placement totalling $200,000 to clients of DJ Carmichael Pty Ltd, an Australian equities broker first founded in 1896
- Fully underwritten non-renounceable rights issue of $515,000 whereby each eligible shareholder will have the right to subscribe for 1 new share at 0.5c per shares for every 9 shares held.
- A further $150,000 sub-underwritten via family interests of Hugh Warner, current Chairman of PSC
A non-renounceable rights issue prospectus is expected to be lodged with ASX over the coming 10 days and posted to all shareholders.
The Company is currently building a stockpile of development ore which will be ‘toll treated’ as a priority.
PSC claims it is now in such a position because of a “successful upgrade of an underground hoist on 4 level (sic) involving extensive hanging wall blasting as well as the fitting of an upgraded underground shaft collar, shaft doors and coco pan hoisting system”.
Furthermore, PSC adds that “rails have been fitted between the sub-decline and the main shaft to improve ore tramming and hoisting capabilities and efficiencies” which allows for underground ore to be sized and loaded into tractor haulage for transport to the toll treating facility.
Background information – About the Prestwood Gold Mine
The mine consists of multiple veins in greenstones at or close to the monzonite contact. The Company is of the view that it is particularly prospective as it lies in the same geological setting as the nearby Farvic Gold Mine, located 4km to the east.
The significance of mineralisation being intersected at the contact of the greenstones and monzonites cannot be overstated. This mineralisation style is very subtle, supported by the fact there is no surface expression at all at the Farvic Mine. The known monzonite extends for over 5km of strike, within ground held by Prospect.