This is progress as shareholders want to see it. Shortly after the lithium company operating in Africa Prospect Resources (WKN A1JW80 / ASX PSC) was able to raise fresh capital of AUD 6 million, moves the company forward and initiates an important initiative!
As Prospect announced today, work has been started on the construction of a flotation pilot plant to produce ultra-pure petalite and spodumene. As Prospect CEO Sam Hosack explained, the Arcadia flow diagram that has been developed will be used to reduce the risk of the flotation process, among other things. At the same time, Prospect hopes to draw conclusions that will allow all technical elements of the project implementation phase to be improved.
Source: Prospect Resources
The pilot plant is also of crucial importance for the company, as it is intended on the one hand to demonstrate that the flotation process can continuously deliver the requested quantities of product in the required quality. On the other hand, Prospect wins bulk samples that can not only be supplied to (potential) customers, with whom one is already working with, for the specification, but which are also to be used to meet market demand for Arcadia products (petalit = glass and ceramics / Spodumene = batteries / electromobility).
It should also be very interesting for the company’s shareholders that Prospect mentions, as it were, that the samples produced in the pilot plant should also be sent to the energy giant Uranium One. There they should not only be used for product validation purposes in relation to a possible acceptance agreement, but are also used by Uranium One for the ongoing due diligence with regard to a possible takeover of the company or the Arcadia project!
Production of the first products planned for H1 2021
According to the implementation plan, the first production of a specification-compliant product should take place in the first half of 2021. According to Prospect, the main risk for adhering to this schedule is the delivery of the devices with long delivery times. The most important such devices are the flotation cells, which Prospect has now secured from the leading flotation cell supplier BGRIMM, so that the risk of delays is reduced.
Prospect plans to house the pilot facility in the existing warehouse and to feed the facility with readily available ore obtained from samples for previous metallurgical test programs. This is expected to keep capital and operating expenses to a minimum. Some of the most important equipment such as grinders and crushers were purchased in the country (Zimbabwe), which further simplifies the implementation plan. According to reports, 500 tons of high-purity petalite and 120 tons of extremely low iron spodumene will be produced initially.
While the due diligence on the possible takeover by Uranium One obviously continues in the background, Prospect is driving the development of the Arcadia project, whose unique geology enables the manufacture of high-purity products that fetch first-class prices in both the technical and chemical markets, at full speed Ahead. The completion and use of the pilot plant as well as the results of the work carried out there should represent an extremely important milestone for the company in the future. The fact that things are now moving quickly is only to be welcomed!
Anyway, investors in Australia enjoyed today’s news. They sent the stock up 6% to A $ 0.105.
In accordance with Section 34b WpHG and Section 48f Paragraph 5 BörseG (Austria), we would like to point out that clients, partners, authors and employees of GOLDINVEST Consulting GmbH hold or can hold shares in Prospect Resources and that there is thus a possible conflict of interest. Furthermore, we cannot rule out that other stock market letters, media or research firms will discuss the values recommended by us during the same period. Therefore, symmetrical generation of information and opinions can occur during this period. Furthermore, there is a consulting or other service contract between a third party who is in the Prospect Resources warehouse and GOLDINVEST Consulting GmbH, which creates a conflict of interest, since this third party pays GOLDINVEST Consulting GmbH for reporting on Prospect Resources. This third party may also hold, sell or buy Nova Minerals shares and would benefit from a rise in Prospect Resources shares. This is another clear conflict of interest.
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