Prospect Resources Ltd. · ASX:PSC
Prospect Resources — Merger or Acquisition (January 2022)
13 slides from Prospect Resources's merger presentation, Jan 25, 2022
Slide 1: Investor Presentation January 2022 - ASX Announcement
ASX.PSC FRA.5E8 ASX ANNOUNCEMENT 25 January 2022 For personal use only Investor Presentation January 2022 Prospect Resources Limited (ASX: PSC, FRA:5E8) (Prospect or the Company) is pleased to provide the attached Investor Presentation. This release was authorised by Sam Hosack, Managing Director. F
Slide 2: Arcadia Transaction Summary
Prospect Resources Limited 25 January 2022 For personal use only Arcadia Transaction Summary ASX:PSC | FRA:5E8
Slide 3: Important notices
Important notices Caution Regarding Forward Looking Information For personal use only The information contained in this presentation or subsequently provided to any recipient of this presentation whether orally or in writing by or on behalf of Prospect Resources Ltd (“Prospect Resources” or “the Com
Slide 4: Transaction Context
Transaction For personal use only Context A partnership process commenced in August 2021, alongside the dual-track Optimised Feasibility Studies work, providing the opportunity for interested external parties to submit proposals to fund the Arcadia Project, in a competitive environment The partn
Slide 5: Transaction Overview
Binding agreements executed for sale of Prospect’s 87% interest in PLZ, owner of Transaction the Arcadia Lithium Project, to Huayou International Mining (Hong Kong) Limited for approximately US$377.8 million ($528.4 million2) in upfront cash consideration Overview 1 For personal use only Attract
Slide 6: Key benefits
Key benefits A highly attractive outcome relative to risks of developing and operating Arcadia For personal use only Most attractive offer received from competitive partnership process Relevant Premiums – Premiums – Premiums of − Extensive review of offers identified Huayou transaction as the most
Slide 7: Risk mitigation
Risk mitigation Avoidance of risks associated with the development and operation of Arcadia For personal use only If the transaction completes, it provides an opportunity to avoid the risks associated with financing, constructing and operating a lithium mine in Zimbabwe. These risks include: Finan
Slide 8: Key conditions precedent to completion
Key conditions precedent to completion Subject to satisfaction/waiver of remaining CPs, transaction completion anticipated in late Q1 or Q2 2022 For personal use only Shareholder approval at Prospect General Meeting – extraordinary general meeting to be held on 25 February 2022 Huayou obtaining
Slide 9: Use of transaction proceeds
Use of transaction proceeds Value realisation through return to shareholders For personal use only Subject to completion, Prospect intends to distribute the bulk of the net sale Transaction Proceeds proceeds to shareholders1 US$378 million ($528 million3) Current estimates of planned distributio
Slide 10: Prospect 2.0
Prospect 2.0 Retention of key management personnel and growth funding For personal use only Prospect’s Board has established a strategy framework, which will be further refined Battery and electrification metals focussed explorer and Business developer Step Aside Project, Zimbabwe Existing asset
Slide 11: Step Aside Lithium Project
Step Aside Lithium Project Initial exploration focus For personal use only Step Aside comprises ~140 hectares of claims located in the Harare Greenstone Belt, west of the Mashonganyika Fault, and approximately 8 kilometres north of Arcadia The potential of the area was confirmed by positive regi
Slide 12: Indicative timeline
Indicative timeline Provisional timetable of events relevant to the transaction For personal use only Event Date Transaction announced 23 December 2021 Notice of Meeting and Explanatory Memorandum dispatched to Shareholders 25 January 2022 Last time and date for determining eligibility to vote at Ex
Slide 13: Contact
Contact For personal use only Nick Rathjen Head of Corporate Development nrathjen@prospectresources.com.au www.prospectresources.com.au 12
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