New and existing investors, including the company's largest shareholder Eagle Eye Asset Holdings, have pumped in an additional A$18 million at 40c per share to help Prospect achieve its goal of getting the African lithium operation into production as quickly as possible.

 

The placement, which was managed by Canaccord Genuity and Foster Stockbroking, was priced at a 9-12% discount to recent prices. 

 

It gives the company almost $24 million in cash.

 

Managing director Sam Hosack said the "size and depth" of the interest in the placement was a "robust endorsement of Prospect's management team and development strategy".

 

The company is hoping to deliver its direct optimised feasibility study on stage two, which will see a step-up to 2.4 million tonnes per annum, but it is looking for aid from a strategic partner.

 

The 2.4Mtpa development is expected to cost US$210 million. Prospect initially looked at a staged process involving two 1.2Mtpa modules, but given high lithium prices, has decided to go all-in with the larger option at the same time.

 

In addition to FEED, early development activities and securing long-lead items, the cash will also be used to support Prospect's search for a strategic partner and regional exploration, including for its emerging interest in rare earth elements. 

 

Prospect now owns 87% of Arcadia, where its pilot plant is now operating, producing a technical grade petalite that has been shipped to offtaker Sibelco. 

 

Stockpiles are building, as Prospect seeks to woo other offtake partners.

 

Prospect has also been spreading its wings with encouraging rare earth soil sampling at Chishanya carbonatite target identifying a suite of minerals including niobium, lanthanum, and neodymium, it has exercised its option over the leases with the Meikle Mining Syndicate.

 

Prospect shares, which have traded at 9.9-49c over the past year, dropped 7% to the placement level today, valuing the company at $169 million. 

 

The company last raised $6.5 million at 15.5c per share in April.