Prospect retains US$21,4m to support future activities
Oliver Kazunga Senior Business Reporter
PROSPECT Resources, which is developing the Step Aside Lithium project in Goromonzi has retained A$30,3 million (US$21.4 million) in cash to prop-up future growth activities premised on the firm’s battery and electrification minerals strategy.
Last year, Prospect concluded a US$377,8 million upfront cash consideration under a share sale agreement with China’s Huayou International Mining for its 87 percent stake in Prospect Lithium Zimbabwe, which is developing the Arcadia Lithium project, also in Goromonzi.
The deal represented the culmination of a strategic partnership process undertaken by Prospect since August 2021.
Following the successful conclusion of a transaction with Huayou International Mining, Prospect has vowed to retain between A$30 million and A$60 million to facilitate the development of the Step Aside Lithium project.
The mining and exploration company said with high-grade spodumene mineralisation also intersected at its 100 percent-owned Step Aside Lithium project, it now has two high-quality lithium exploration assets under rapid advancement in Sub-Sahara African countries that include Namibia.
“It has been another robust quarter for the company. Prospect is well positioned for the year ahead with strong cash reserves of approximately A$30,3 million and a clear, continued advancement of our broader strategic objective, which is to be a leading battery and electrification metals-focused exploration and development business,” said Prospect managing director and chief executive officer, Mr Sam Hosack in the company’s quarterly activities and cashflow report for the period ended December 31, 2022.
He said technical teams progressing with the company’s assets, the corporate team continues to focus on value creation through the process of identifying, assessing, investing in, and advancing battery and electrification metals opportunities, elsewhere in sub-Saharan Africa.
Mr Hosack said Prospect will be attending the upcoming Mining Indaba conference in Cape Town, South Africa early this month.
He said the Mining Indaba is a perfect forum for Prospect to promote its credentials and seek out further opportunities.
“The successful completion of our Arcadia transaction continues to attract first-rate partners seeking development partners, putting the organisation in a leading position to capitalise on the mineral-rich Sub-Saharan region,” said Mr Hosack.
Prospect is a southern Africa-focused lithium and gold mining and exploration firm head-quartered in Perth, Australia with operations in Zimbabwe.
The company entered the Zimbabwe mining space in early 2012 scouting for gold and other opportunities.