Keeping its resource prospects open, PSC secures funding for future gold production
Hey! Looks like you have stumbled on the section of our website where we have archived articles from our old business model.
In 2019 the original founding team returned to run Next Investors, we changed our business model to only write about stocks we carefully research and are invested in for the long term.
The below articles were written under our previous business model. We have kept these articles online here for your reference.
Our new mission is to build a high performing ASX micro cap investment portfolio and share our research, analysis and investment strategy with our readers.
Click Here to View Latest Articles
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.
A 3D model of PSC’s Prestwood Mine in Zimbabwe
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.
General Information Only
S3 Consortium Pty Ltd (S3, ‘we’, ‘us’, ‘our’) (CAR No. 433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information and is for informational purposes only. Any advice is general advice only. Any advice contained in this article does not constitute personal advice and S3 has not taken into consideration your personal objectives, financial situation or needs. Please seek your own independent professional advice before making any financial investment decision. Those persons acting upon information contained in this article do so entirely at their own risk.
Conflicts of Interest Notice
S3 and its associated entities may hold investments in companies featured in its articles, including through being paid in the securities of the companies we provide commentary on. We disclose the securities held in relation to a particular company that we provide commentary on. Refer to our Disclosure Policy for information on our self-imposed trading blackouts, hold conditions and de-risking (sell conditions) which seek to mitigate against any potential conflicts of interest.
Publication Notice and Disclaimer
The information contained in this article is current as at the publication date. At the time of publishing, the information contained in this article is based on sources which are available in the public domain that we consider to be reliable, and our own analysis of those sources. The views of the author may not reflect the views of the AFSL holder. Any decision by you to purchase securities in the companies featured in this article should be done so after you have sought your own independent professional advice regarding this information and made your own inquiries as to the validity of any information in this article.
Any forward-looking statements contained in this article are not guarantees or predictions of future performance, and involve known and unknown risks, uncertainties and other factors, many of which are beyond our control, and which may cause actual results or performance of companies featured to differ materially from those expressed in the statements contained in this article. S3 cannot and does not give any assurance that the results or performance expressed or implied by any forward-looking statements contained in this article will actually occur and readers are cautioned not to put undue reliance on forward-looking statements.
This article may include references to our past investing performance. Past performance is not a reliable indicator of our future investing performance.
