PSC returns high grade lithium oxide results, lands $16m placement

Published at Jul 22, 2016, in Small Caps

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.

tags

LITHIUM

S3 Consortium Pty Ltd (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 only. Any advice is general advice only. Neither your personal objectives, financial situation nor needs have been taken into consideration. Accordingly you should consider how appropriate the advice (if any) is to those objectives, financial situation and needs, before acting on the advice.

Conflict of Interest Notice

S3 Consortium Pty Ltd does and seeks to do business with companies featured in its articles. As a result, investors should be aware that the Firm may have a conflict of interest that could affect the objectivity of this article. Investors should consider this article as only a single factor in making any investment decision. The publishers of this article also wish to disclose that they may hold this stock in their portfolios and that any decision to purchase this stock should be done so after the purchaser has made their own inquires as to the validity of any information in this article.

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