AUS
NZ
UK
CA
USA
FRA
GER
ESP
ITA
NLD
PRT
SWE
GRC
IND
POL
BRA
ZAF
RUS
CHN
UAE
Prospect Resources Limited (ASX:PSC), headquartered in Subiaco, Australia, is a mineral exploration company working towards evaluation and development of mineral properties (lithium and gold deposits) in Zimbabwe.
The Afrtican battery minerals company is currently accelerating works at its flagship asset, the Arcadia Lithium Project situated on the periphery of Harare in Zimbabwe, which represents a globally significant hard rock lithium resource. Prospect is currently focussed on the near-term production of petalite and spodumene concentrates at this project.
On 17th May 2019, Prospect Resources announced that the Companyâs offtake partner and major shareholder, Sinomine Resource Group Co., Ltd commenced construction (on 6TH May 2019), of a battery grade lithium hydroxide plant and a significant expansion to its existing battery grade lithium carbonate plant.
Sinomine Resource Group is a Beijing, China- based company engaged in manufacturing of base metals chemicals, geological exploration as well as mining investment.
Dongpeng New Materials Co., Ltd, Sinomineâs wholly owned subsidiary, started with the phase 1 of its expansion plan focused on development of the 15,000 tpa battery grade lithium hydroxide plant at Dongpengâs existing facility in Xinyu City, Jiangxi Province, with expected completion by August 2020. The Lithium Carbonate Equivalent (LCE) of this lithium hydroxide output is approximately 23,000 tpa. Prospectâs offtake agreement with Sinomine makes up approximately 64% of the lithium hydroxide plantâs total annual LCE requirements to reach capacity.
Currently, Dongpengâs existing plant is producing 5,000 tpa of high purity lithium carbonate, 6,000 tpa of battery grade lithium carbonate and 3,000 tpa of battery grade lithium fluoride. When the battery grade lithium hydroxide plant is completed, Dongpeng also plans to begin with the expansion of its existing battery grade lithium carbonate plant from 6,000 tpa to 16,000 tpa. This will deliver Sinomine a total annual capacity of ~ 47,000 LCE.
With numerous industrial applications, Lithium has the highest electrochemical potential amongst all metals, a key property in its role in lithium-ion batteries which are at the centre of the global transition to renewable energy alternatives.
Also, on 16th May 2019, Prospect Resources announced that it had agreed to sell its Congoâs exploration business to New Energy Metals. The Perth-based NRG is planning to debut on the ASX this year. The sale would involve the transfer of Prospect Cobalt Pte Ltd (Prospectâs 100% owned subsidiary), and its related entities.
The consideration for the sale includes â AUD 1,000 and the costs of transferring ownership of PCP to NRG; ~ AUD 50K of new shares in NRGâs proposed seed capital placing and AUD 100K of new shares in NRGâs proposed IPO placing; plus AUD 1 million on delineation of a JORC Inferred Mineral Resource Estimate of greater than 5Mt. A net smelter royalty of 1% on any copper and cobalt products produced from existing or future projects generated by NRG in the DRC is also specified.
With around 2.05 billion outstanding shares, the PSC stock closed the market trading at AUD 0.019, zooming up 5.56% with ~ 1.21 million shares traded.
Disclaimer
This website is a service of Kalkine Media Pty. Ltd. A.C.N. 629 651 672. The website has been prepared for informational purposes only and is not intended to be used as a complete source of information on any particular company. Kalkine Media does not in any way endorse or recommend individuals, products or services that may be discussed on this site. Our publications are NOT a solicitation or recommendation to buy, sell or hold. We are neither licensed nor qualified to provide investment advice.
