Prospect Resources equity raising announcement

Prospect Resources Ltd (ASX: PSC, FRA:5E8) has received firm commitments totalling approximately A$8 million in new equity proceeds through a placement of approximately 80 million new ordinary shares to institutional and sophisticated investors at an issue price of A$0.10 per share. The company also intends to undertake a non-underwritten Share Purchase Plan (SPP) at the same issue price as the Placement targeting to raise A$2 million, bringing the total gross proceeds to approximately A$10 million.

Executive commentary on equity raising and Mumbezhi Copper Project

We believe the scale and depth of the interest received for the Placement is a robust endorsement of the Mumbezhi Copper Project acquisition and our advancement strategy for this exciting asset. I would like to take this opportunity to thank our existing shareholders for their ongoing support, and to welcome a number of new, high-quality institutional investors to our register. The process of systematically reviewing and validating all available technical data following our recent purchase of Mumbezhi has confirmed the strong prospectivity of this land package. This opportunity is only accentuated against the backdrop of a long-term global copper market that is projected to be undersupplied. Given these dynamics, we are naturally excited to be on the ground at Mumbezhi progressing our maiden drill programme and other key site-based workstreams. The raising also provides us with the flexibility to rapidly advance Mumbezhi in parallel with pursuit of other suitably value-accretive growth opportunities, particularly focused on additional copper assets in Zambia.

Summary of equity raising and future plans

Prospect Resources Ltd has successfully raised approximately A$10 million to advance exploration and development activities at the Mumbezhi Copper Project in Zambia. The funds will be used for resource-focused drilling initiatives, regional exploration activities, and review of complementary exploration and development opportunities, particularly within Zambia. The company's Managing Director and CEO, Sam Hosack, expressed excitement about the strong prospectivity of the land package and the long-term global copper market dynamics. The company aims to rapidly advance Mumbezhi while pursuing value-accretive growth opportunities, particularly focused on additional copper assets in Zambia. The successful equity raising provides Prospect Resources with the financial flexibility to execute its strategic plans and capitalize on the emerging opportunities in the copper market.