Prospech Ltd Secures $2.17M to Accelerate Rare Earth Exploration
Prospech Ltd has successfully closed a fully subscribed $1.6 million rights issue, supplemented by a $546,750 follow-on placement, positioning the company to advance drilling and metallurgical programs in Finland and Slovakia.
- Rights issue raised $1.6 million fully subscribed
- Additional $546,750 raised via follow-on placement
- Total capital raised $2.17 million before costs
- Funds allocated to Finnish and Slovakian drilling programs
- 72 million options issued, some pending shareholder approval
Capital Raise Completes with Strong Investor Support
Prospech Ltd (ASX – PRS), a mining company focused on rare earth elements, has announced the successful completion of its renounceable rights issue, raising approximately $1.6 million before costs. The rights issue was fully subscribed, reflecting solid backing from existing shareholders and attracting new investors eager to participate in the company’s growth plans.
To meet excess demand beyond the rights issue, Prospech undertook a follow-on placement, raising an additional $546,750 on the same terms. This brings the total capital raised to $2.17 million, strengthening the company’s balance sheet and funding pipeline.
Funding Exploration and Metallurgical Advancements
The freshly raised funds will be deployed primarily to support expanded drilling programs at Prospech’s projects in Finland and Slovakia. These regions are strategically important for the company’s rare earth exploration ambitions, with the potential to unlock valuable mineral resources.
In addition to exploration, the capital will advance rare earth metallurgical work programs, a critical step in refining and processing these strategic minerals. This dual focus on exploration and metallurgy underscores Prospech’s integrated approach to developing its assets.
Share Issuance and Options Structure
Prospech will issue a total of 144.7 million new fully paid ordinary shares and 72.3 million new options exercisable at $0.04, expiring in October 2028. While most options will be issued under the company’s existing listing rule capacities, approximately 2 million options require shareholder approval, which will be sought in due course.
The involvement of Mahe Capital Pty Ltd as lead manager and underwriter provided additional confidence and structure to the capital raising process, ensuring smooth execution and compliance with ASX regulations.
Looking Ahead
Chairman Tom Mann expressed gratitude to shareholders for their ongoing support, highlighting that the capital raise enables Prospech to broaden its drilling efforts and accelerate metallurgical programs. This financial backing is a crucial enabler as the company seeks to advance its rare earth projects towards development milestones.
Investors will be watching closely for updates on the shareholder approval process for outstanding options and progress reports from the field as drilling and metallurgical activities ramp up.
Bottom Line?
Prospech’s well-supported capital raise sets the stage for critical exploration and metallurgical milestones in the rare earth sector.
Questions in the middle?
- Will shareholder approval for the remaining options be secured smoothly?
- What initial results can be expected from the expanded drilling programs in Finland and Slovakia?
- How will metallurgical advancements impact Prospech’s project valuation and timeline?
