Prospect Resources (ASX:PSC) share price leaps 16% as company receives 7 proposals for lithium project

a female superhero dressed in shiny green with a mask leaps in the sky with leg and arm outstretched in a leaping action.

The Prospect Resources Ltd (ASX: PSC) share price is rocketing to an all-time high today following an update on the company’s strategic partnership process.

At the time of writing, the lithium producer’s shares are advancing 16.24% to 68 cents. This is just shy of an almost four-year record high of 69 cents touched during early afternoon trade.

Prospect reviews non-binding proposals

Investors are sending Prospect shares higher as they digest the company’s latest announcement.

According to its release, Prospect advised it has received seven non-binding proposals for the development of the Arcadia Lithium Project.

Located in Zimbabwe, the Arcadia project is Prospect’s flagship asset, in which it holds an 87% interest. Since acquiring the project in mid-2016, Prospect has progressed Arcadia from discovery to the most advanced lithium project in Africa.

The company noted that it has engaged with a number of interested parties in the past week following data room access and site visits.

The non-binding proposals have come from several international parties offering various support structures. This includes development joint ventures, offtake prepayment debt funding, and the acquisition of Prospect’s interest in the Arcadia Lithium Project.

While there is no guarantee that any of the proposals will materialise, Prospect is in discussions with its financial advisors to determine the best option.

Prospect share price snapshot

Over the past 12 months, the Prospect share price has accelerated 452%, with year-to-date up around 305%. The company’s shares have taken off on the back of strong investor hype in the lithium sector.

Based on today’s price, Prospect presides a market capitalisation of roughly $295 million, with 428.52 million shares on hand.

The post Prospect Resources (ASX:PSC) share price leaps 16% as company receives 7 proposals for lithium project appeared first on The Motley Fool Australia.

Should you invest $1,000 in Prospect right now?

Before you consider Prospect, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Prospect wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

More reading

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s