Prospect has since managed to raise the targeted amount through a private placement and will issue out 4,4 million new shareholders, having decided to shelve plans for a right issue to avoid diluting existing shareholders.
There is rapidly growing interest in lithium across the world as the mineral, used in glass manufacturing, is also used in the manufacturing of electric car batteries, the future non-combustible energy source of the automobile industry.
Prospect's technical grade and ultra-low iron petalite has already passed the second qualification stage with one of
Lithium has been classified as one of the key mineral expected to drive
The company said yesterday it had eventually settled for private placement after noting the rapid rise in the company's share price, which would make it difficult for some shareholders to follow their rights, hence the risk of significant dilution.
Prospect's stock price, the company said in a statement, had shot up by 53 percent inside a month on strong positive sentiment in lithium, confidence in the firm's planned activities and expected continued revaluation.
Executive chairman,
This has inspired investor interest in the firm's stock, pushing up its value and so it was deemed that fixing a rights issue price now, may mean a significantly larger dilution to shareholders who are not able to participate in the rights issue due to financial reasons or their jurisdiction.
Prospect's flagship project is the Arcadia lithium project located on the outskirts of
The Arcadia project represents a globally significant hard rock lithium resource and is being rapidly developed by Prospect's, focusing on near term production of petalite and spodumene concentrates.
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