Prospect Resources to raise $1m for Zim mine

Published: 30 May 2014

Australian listed company, Prospectus Resources says it has entered into a placing agreement to raise $1million dollars about A$1 078 748) through the issuance of 71,9 million shares at $0,015 to fund exploration of its gold assets in Zimbabwe.

In a press release yesterday, the company said the share placement is to Armoured Fox Capital, an investment vehicle represented by Sithembiso Mthethwa and Manana Nhlanhla who are successful South African business people.

Completion of the share placement is planned to occur within 14 calendar days of this announcement and is subject to receiving approval from the South African Reserve Bank for an ‘outward capital transfer'.

The funds raised will be used for general working capital, to fund exploration on the company's Zimbabwe gold assets, and to progress litigation against Alexander Molyneux, Blumont Group and Pacific Advisers in relation to a subscription for $3,9 million worth of shares in Prospect.

The company has an active 2014 exploration and development programme to develop its mineral assets in Zimbabwe and Australia.

In April, Prospect intersected gold grading up to 12,3 grams per tonne from a promising maiden drill campaign at the Prestwood Gold Mine in Gwanda.

Highlight results from under the main gold reef included 1 metre at 9,23g/t gold at 153 metres, and 1 metre at 9,94g/t gold at 193 metres.

The 12,3g/t gold intercept over 1 metre was within shallower shear zones and could imply open pit development potential.

These results confirmed that the mineralised reef continues below and along strike of the historic gold workings.

Prospectus Resources Limited is publicly listed company based in Australia.
- Zim Mail

Tags: Gold,