Sign up Australia
Proactive Investors - Run By Investors For Investors

Prospect Resources lands $1 million via placements at 233% premium

Prospect Resources lands $1 million via placements at 233% premium

Prospect Resources (ASX:PSC) has emerged from a trading halt and will trade significantly higher after entered agreements to raise $1,000,000 via the issue of 100 million shares at $0.01, a 233% premium to that last traded share price of $0.003.

Shares in the company have since increased to $0.007.

This is a substantial endorsement and vote of confidence from the investors, which include an Africa focused private equity fund, MBM Capital Partners LLP for A$750,000 and Sirius Trustees Ltd for A$100,000 respectively. These two subscription agreements are unconditional.

Family interests associated with a director, Hugh Warner, have agreed to subscribe for $150,000. The share subscriptions by entities associated with Hugh Warner are subject to shareholder approval.

The funds raised will be used for general working capital, to fund exploration on its Zimbabwe gold assets; and to progress previously announced litigation against Alexander Molyneux, Blumont Group, and Pacific Advisers in relation to a subscription for $3.9 million in Prospect shares at $0.012.

Prospect is in the process of acquiring a 70% interest in the Bushtick and Penhalonga Gold Projects in Zimbabwe.

Bushtick is a dormant mine situated 8 kilometres north northeast of Esigodini which had historically been a major producer with a large tailings stockpile.

The surrounding ground of about 25 square kilometres is also prospective and has not been the subject of any modern prospecting.

Penhalonga consists of a number of shear and vein hosted gold deposits along the southern side of the Penhalonga Valley covering an area of almost 2 square kilometres.

This includes the historic Battersea Gold Mine and the dormant Penhalonga Gold Mine.

Prospect is now capitalised at around $2 million.


Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX “Small and Mid-cap” stocks with distribution in Australia, UK, North America and Hong Kong / China.

View full PSC profile View Profile

Prospect Resources Ltd Timeline

Related Articles

Graphite concentrate
March 22 2018
Hayes noted that Bunyu North product samples have returned excellent first-stage processing results.
A new joint venture is also being set up on a 70/30 MOD/Metal Tiger basis to continue exploration
January 12 2018
Savannah Resources has a broad portfolio of assets, including some highly attractive lithium

No investment advice

The information on this Site is of a general nature only. It does not take your specific needs or circumstances into consideration, so you should look at your own financial position, objectives and requirements and seek financial advice before making any financial decisions. You acknowledge and understand that neither the Company, its related bodies corporate, the information providers or their affiliates will advise you personally about the nature, potential value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter. You should read our FSG and any other relevant disclosure documents and if necessary seek persona advice prior to making any investment decision.

You understand and agree that no Content (as defined below) published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person.

You understand that in certain circumstances the Company, its related bodies corporate, the information providers or their affiliates may have received, or be entitled to receive, financial or other consideration in connection with promoting, and providing information about, certain entities on the Site and in communications otherwise provided to you.

You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate. From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.

Before you act on any general advice we provide, please consider whether it is appropriate for your personal circumstances.

© Proactive Investors 2018

Proactive Investors Australia PTY LTD ACN:132787654 ABN:19132787654.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use