Prospect Resources Limited has completed a Share Sale and Purchase Agreement with a private company, Fatima Resources (Pty) Ltd., who is familiar with operating in Zimbabwe, for the sale of its Singapore-registered subsidiary, Promin Resource Holdings Pte Ltd. (Promin) for a consideration of up to US$2.2 million. Promin is a wholly owned subsidiary of Prospect and holds a 90% interest in the Step Aside Lithium Project in Zimbabwe.
Prospect’s Managing Director and CEO, Sam Hosack, commented:
“We are pleased to have completed this sale agreement for the Step Aside asset, with the transaction providing us both an upfront cash return, a deferred cash payment in six months’ time, and future upside to subsequent exploration success and value growth at this prospective lithium deposit.
“The mineralised system justifies additional drill testing, and the future management of Step Aside is in good hands, as 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.”
Agreement Terms
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.
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 future sale transaction where the value of the Project is more than US$5.0 million.
