How Prospech’s $2.1M Raise Fuels Rare Earth and Gold-Silver Breakthroughs
Prospech Limited reports steady progress on rare earth element metallurgy at its Korsnäs project and promising gold-silver drill results in Slovakia, backed by a fully subscribed $2.1 million capital raising.
- 300 kg Korsnäs bulk sample undergoing flotation and hydrometallurgical testing
- Completion of $2.1 million capital raising via rights issue and placement
- Encouraging gold-silver drill intercepts at Slovakian prospects
- Metallurgical test work progressing without red flags
- Plans for continued drilling and metallurgical studies over next 6-12 months
Metallurgical Progress at Korsnäs
Prospech Limited has advanced its rare earth element (REE) metallurgical program at the Korsnäs project in Finland, a critical step amid tightening global supply constraints. The company delivered a substantial 300 kg bulk sample from its Lanthanide Concentrate Stockpile to CORE Resources in Australia, where a structured flotation program is underway. This process aims to optimize the circuit and produce an upgraded concentrate of approximately 20 to 30 kg for downstream hydrometallurgical testing.
Complementing CORE's flotation work, ANSTO Minerals has been contracted to conduct Stage 1 hydrometallurgical testing, including pre-leach and acid-bake/leach trials. These tests will provide vital data on extraction efficiency and impurity management, informing the design of a scalable processing flowsheet. Early indications are positive, with no 'red flags' reported so far, suggesting the project is on track to meet technical milestones.
Capital Raising Strengthens Balance Sheet
To support its metallurgical and exploration activities, Prospech successfully completed a $2.1 million capital raising through a fully subscribed renounceable rights issue and a follow-on placement. The rights issue offered existing shareholders two new shares for every seven held, priced at $0.015 per share, with attaching options exercisable at $0.04. This funding boost not only underpins ongoing test work but also accelerates exploration programs in Finland and Slovakia.
Encouraging Gold-Silver Exploration in Slovakia
Alongside its REE focus, Prospech is revisiting its Slovakian gold-silver-copper portfolio amid rising precious metal prices. Recent drill results from prospects such as Nova Baňa, Gupna, Kohutovo, and Krakauer reveal multiple intercepts with significant gold and silver grades. Notably, broad quartz-breccia zones and epithermal vein systems have been identified, warranting systematic step-out drilling to delineate resource continuity and grade distribution.
These findings support a low-sulphidation epithermal model and highlight the potential for resource expansion. Prospech plans to advance exploration drilling in Slovakia concurrently with resource drilling in Finland, maintaining a balanced approach to its portfolio development.
Outlook and Strategic Positioning
Prospech’s Managing Director, Jason Beckton, emphasised the company’s disciplined approach to technical progress and cost control. With metallurgical results expected in the coming quarter and exploration drilling underway, the company is positioning itself to respond to the growing demand for independent Western rare earth supplies, especially in light of recent Chinese export restrictions.
Furthermore, Prospech’s participation in key industry conferences in Finland underscores its commitment to engaging with the broader mineral economy and refining sectors, potentially opening avenues for partnerships and market recognition.
Bottom Line?
Prospech’s methodical advancement of metallurgy and exploration, backed by fresh capital, sets the stage for critical updates that could reshape its rare earth and precious metals prospects.
Questions in the middle?
- What will the final flotation and hydrometallurgical test results reveal about processing viability?
- How will ongoing drilling in Finland and Slovakia impact resource estimates and project valuation?
- What strategic partnerships or off-take agreements might Prospech pursue amid shifting global rare earth dynamics?
