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.
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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.
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