Prospect in $10m raising

Lithium hopeful Prospect Resources has tapped investors for $10 million as the company develops its Arcadia project in Zimbabwe.

Perth-based Prospect has issued 166 million shares at 6 cents each, representing a 5.3 per cent discount on the 15-day volume-weighted average price.

In a statement to the ASX, the company said it would use the funds primarily for its lithium project.

“The proceeds from the placement are expected to enable Prospect to accelerate the development of the Arcadia lithium project and take advantage of the support offered by the new Zimbabwe government under its Rapid Response Initiative,” Prospect said.

The pre-feasibility study for the project was completed in June last year and outlined a capital expenditure of $US52.5 million was required.

Hunter Capital Advisors acted as the lead manager to the placement.

Shares in Prospect were down 7 per cent at 6.1 cents at 3pm AEDT.