Prospect on Wednesday revealed that it had received subscriptions for more than 46.1-million shares, at an issue price of 13c each in a private placement to sophisticated and professional investors.

“This transformation growth capital will be deployed prudently on advancing the Arcadia lithium project. The strong demand from a number of institutional investors is in support of Prospect’s plan to get into production,” said MD Sam Hosack.

“Arcadia is in a unique position, as it is the only lithium deposit that can produce in the lowest quartile both low iron spodumene for the electric vehicle market, and high purity petalite lithium concentrate for the glass and ceramics markets.”

The funds raised from the placement will go toward the production of samples for downstream offtakers and customers through the design, supply and operation of a flotation pilot plant, to undertake front-end engineering design for the Arcadia project, and to fund project finance activities and working capital.

Over a mine life of 15 years, Arcadia is expected to produce 2.4-million tonnes a year of lithium.