Africa-Press – Zambia. AUSTRALIAN miner, Prospect Resources Limited, has completed the US$2,2 million sale of its Step Aside Lithium Project, formally ending the company’s operations in Zimbabwe.
Earlier this month, Prospect announced it had entered into a share sale and purchase agreement with a private firm, Fatima Resources Pty Ltd, for the sale of its Singapore-registered subsidiary, Promin Resource Holdings Pte Ltd, for US$2,2 million.
Promin holds a 90% stake in the Step Aside Lithium project.
Step Aside Mine, acquired by Prospect in March 2022, is located about 8km north of the Arcadia Lithium Mine, which the company sold in 2022 to Chinese battery materials giant Zhejiang Huayou Cobalt Co Ltd.
“Under the agreement, Prospect was paid an initial cash sum of US$850 000 for the purchase of the project upon completion, with another US$150 000 cash payable six months post completion of the transaction,” Prospect said.
“An additional cash payment of up to US$1,2 million is also payable to Prospect if, within 24 months of transaction completion, the buyer achieves certain milestones, including the entry into binding offtake agreements, upgrades to the mineral resource of the project, or a future sale transaction where the value of the project is more than US$5 million.”
The divestment concludes Prospect’s phased withdrawal from Zimbabwe, where Step Aside was actively explored between 2022 and 2024 before global lithium prices declined sharply. The company is now shifting its focus entirely to copper exploration in Zambia.
“We are pleased to have completed this sale agreement for the Step Aside asset,” Prospect’s managing director and chief executive officer, Sam Hosack, said.
He added that the transaction provided the firm with an upfront cash return, a deferred payment in six months, and potential future upside linked to exploration success at the promising lithium deposit.
Hosack said while the mineralised system warrants further drilling, the project “is now in good hands”.
“… we look forward to seeing just how far the project can grow, while we focus our attention on the exciting Mumbezhi Copper Project in Zambia.”
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