Prospect Resources Ltd (ASX:PSC) has raised $1 million after a major shareholder and foundation investor subscribed for 20 million shares priced at $0.05 each.
The raising follows the recently successful $16 million placement, which was increased from $14 million due to investor demand.
The company is currently accelerating exploration at the Arcadia high grade lithium project in Zimbabwe.
The project hosts the Arcadia Lithium Deposit, which is a historically producing mine and has an initial exploration target of 15-18 million tonnes at 3-5% lithium.
Exploration news flow is set to increase with assays pending for 16 diamond drill holes and rigs continuing to drill.
Drilling at Arcadia
Prospect recently completed the first 16 diamond drill holes at the company's Arcadia lithium project in Zimbabwe.
Assays are pending
Drilling has confirmed the down dip extension of the Main Pegmatite exposed in the old Arcadia pit.
The company has identified at least 14 pegmatite layers, 4 above the Main pegmatite and 9
A reverse circulation rig has been mobilised and is now drilling the first of the next 15 holes.
Channel chip samples
Prospect recently received all remaining channel chip samples collected from the weathered exposures of the historical Arcadia pit, within the Arcadia lithium project.
Of the 316 samples, the peak value was 4.37% lithium, with the full breakdown:
- 6 samples return over 4% lithium;
- 28 samples return over 3% lithium;
- 95 samples return over 2% lithium;
- 178 samples return over 1.5% lithium; and
- 238 samples return over 1% lithium.
The rock chip samples were collected from one to two metre intervals located along continuous traverses over the central eastern side of the exposed pegmatite within the Arcadia pit as well as from initial geological traverses of the claims area.
Prospect has received strong investor support with the stock trading up over 10 times year to date.
The company’s exploration success to date helped support the recent $16 million raising, with strong demand from Chinese sophisticated investors, including those within the lithium battery production cycle.
The stock is trading at $0.054, representing a premium to the recent placement price of $0.05.
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