Prospect raises $6m for lithium project

Prospect Resources is raising $6 million from a share placement to go towards its lithium project in Africa.

The company, based in Perth, will use the proceeds to develop a pilot plant to produce low iron spodumene and high purity petalite samples for glass and ceramics customers, as well as complete front-end engineering design for its Arcadia lithium project. 

Prospect will also use the funds raised to progress project financing.

Managing director Sam Hosack said the company had received strong demand for the placement.

“Arcadia is in a unique position, as it is the only lithium deposit that can produce in the lowest quartile both low iron spodumene for the electric vehicle market and high purity petalite lithium concentrates for the glass & ceramics markets,” he said.

Prospect will issue about 46 million shares priced at 13 cents each, with the placement being managed by US-based Viriathus Capital.

Shares in Prospect closed down 10.5 per cent to trade at 17 cents.