African lithium developer, Prospect Resources Ltd (Prospect) has sold its Penhalonga gold project in Zimbabwe to Luzich Resources Africa for US$1 million.
In a statement, Prospect said it had entered into a binding term sheet with Luzich Resources Africa, an affiliate of Luzich Partners for the asset.
Luzich is expected to pay a non-refundable deposit of US$200 000 within 45 days of the date of the agreement and US$800 000 within 180 days.
“Completion of the transaction is subject to Luzich being satisfied with its due diligence investigations and Prospect obtaining all necessary regulatory consents and approvals (together with) normal commercial terms and warranties associated with a transaction of this nature,” the statement read.
“It is good news to see a North American investor of Luzich Partners’ status investing in Zimbabwe and it is further evidence that Zimbabwe is becoming an attractive international investment destination,” Prospect managing director Sam Hosack said.
“Prospect is focused on taking Arcadia lithium project into production as soon as possible. The agreement allows Prospect to extract value from its non-core assets and further strengthen Prospect’s balance sheet. Proceeds from the sale of the Penhalonga gold project will be applied to this aim.”
Luzich Partners is a Las Vegas-based multi-strategy private investment firm that was established in 2013.
It seeks investments in public and private assets globally across a range of industries, including mining.
Prospect is an ASX-listed lithium company based in Perth, Australia, with operations in Zimbabwe.
Its flagship project is the Arcadia lithium project located on the outskirts of Harare.
Prospect also revealed that Hugh Warner had stepped down as executive chairman after more than eight years of service.
Warner and Harry Greaves, who is currently the company’s executive director, led Prospect’s move into Zimbabwe and under their leadership, the company acquired a portfolio of grassroots mining assets comprising gold, rare earths and lithium.
The company said it had commenced the process of recruiting a high calibre independent non-executive chairperson. In the interim, Greaves will act as chair.