ProspectResources Ltd. said it has received commitments to raise A$14million by issuing 280 million shares at a price of 5 cents per share,according to a July 20 statement.

Proceeds will be used to accelerate drilling, mine designand feasibility studies at the Arcadia lithium deposit at Zimbabwe, as well as to orderlong lead time items of plant for the project. Current exploration on theArcadia project is progressing 24 hours per day with two diamond rigs.

With the funds, Prospect Resources plans to fast trackexploration at the God's Gift lithium deposit, which it in July, and to accelerateproduction at the Gwanda East gold camp. Both projects are in Zimbabwe.

The placement will also enable the company to acquireadditional assets, especially in lithium, graphite and cobalt sectors and tosupplement general working capital.

The placement has been backed by strong demand from Chineseinvestors, some of which own lithium battery production cycle, according toChairman Hugh Warner.

The company expected to issue the shares on or shortly afterJuly 22 after it seeks shareholder approval for the placement on the same date.