Prospect Resources (ASX:PSC) - Managing Director, Sam Hosack
Managing Director, Sam Hosack
Source: Finance News Network
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  • Prospect Resources (PSC) sells its 87 per cent interest in Prospect Lithium Zimbabwe to new energy lithium-ion battery material producer, Zhejian Huayou Cobalt for US$377.8 million
  • The transaction equates to approximately A$1.23 per share
  • MD Sam Hosack delighted with the outcome
  • Prospect Resources expects to retain a cash balance of up to US$50 million to progress its other battery metals projects in Zimbabwe
  • Prospect Resources (PSC) was up 24 per cent at A$0.96 per share at 1020 AEDT

Prospect Resources (PSC) is selling its 87 per cent interest in Prospect Lithium Zimbabwe, owner of the Arcadia Lithium Project, to new energy lithium-ion battery material producer, Zheijan Huayou Cobalt for US$377.8 million.

The transaction equates to approximately A$1.23 per share, representing a 78 percent premium to the Prospect Resources share price.

Prospect MD and CEO Sam Hoscack expressed delight at the outcome.

“It is the culmination of a process that gained global traction and generated inbound interest amongst potential partners for the world-class Arcadia Lithium Project.” said Mr Hosack.

The transaction shows the support of the Government of Zimbabwe for the Arcadia Lithium Project.

Zheijan Huayou will pay a deposit of US$20 million and a similar break fee.

Prospect Resources expects to retain a cash balance of up to US$50 million to progress its other battery metals projects in Zimbabwe.

Prospect Resources intends to distribute any remaining net proceeds to its shareholders.

The transaction is expected to be completed late in the first quarter or early second quarter of 2022.

Prospect Resources is a lithium company based in Perth, with operations in Zimbabwe.

Zheijiang Huayou Cobalt is a Chinese new energy metals producer.

Prospect Resources (PSC) was up 24 per cent at A$0.96 per share at 1020 AEDT.

PSC by the numbers
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