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.
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