Prospect Resources (ASX:PSC) is going all in on its Zambian copper focus, signing a share sale and purchase agreement with private company Fatima Resources for lithium project Step Aside that will see Prospect bank $2.2 million.
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Under the agreement, Prospect will divest its wholly owned Singapore-based subsidiary Promin Resources Holdings, which holds a 90% interest in Step Aside, for $850,000 up front and then a further $1.2M in the next two years, up to 2027, as long as the explorer hits several development milestones.
That expected $2.2M windfall from the Step Aside sale will then go into “growing our Zambian copper portfolio,” the Australian explorer declared today.
The move also brings Prospect’s time hunting lithium to an end; it had originally joined the new-age resource rush with Arcadia in Harare in 2016. That project was then sold away in 2022, netting Prospect $377.8M at the time.
“We believe the [Step Aside] project remains prospective for further drilling and are confident it will continue to grow under new ownership,” Prospect’s managing director, Sam Hosack, explained to shareholders.
He added that Fatima, which has “extensive operating experience in Zimbabwe,” should be well-positioned to advance the project’s exploration potential.
And, most importantly, stepping aside at Step Aside leaves Prospect free to advance the Mumbezhi Copper Project in northern Zambia. The explorer’s already been working through Phase Two drilling – it’s expected to wrap up quite soon – and is preparing to update the site’s resource estimate later this year.
“We remain focused on delivering further resource growth and expanding the project’s regional footprint at Mumbezhi,” Mr Hosack said.
HotCopper also understands Prospect will be using some of the money now sitting in its coffers (once sales firm Nurture Capital Zimbabwe rubber stamps the deal) to evaluate other Zambian-based copper opportunities.
PSC has been 19cps today; it’s down a soft -2.56% on the sale news.
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