By Alois Vinga
PROSPECT resources Limited has received US$342,9 million payment for its Harare-based Arcadia project amid plans to shift focus to the exploration of near-by Step Aside project.
In a recent update, the miner said conditions precedent relating to the transaction were progressed and subsequent to the quarter ending April 2022, Prospect completed the sale of its 87% interest in the Arcadia Project to Huayou International Mining (Hong Kong) Limited, a subsidiary of Huayou.
The transaction comprised a cash consideration of approximately US$377,8 million.
Following payment of US$26,8 million in Zimbabwean capital gains tax and US$8 million to Sinomine in relation to the termination of the off-take agreement between Prospect and Sinomine, US$342,9 million, inclusive of the deposit of US$20m, in net proceeds were received.
Prospect Managing Director and CEO, Sam Hosack said completion of the transaction marks the shift of focus to the next phase of the company’s growth plans, including further delineation of the miner’s Step Aside Project.
The firm also intends to explore further prospective battery metal projects within Zimbabwe and the broader sub-Saharan African region.
“We are at an exciting point in the Company’s history, and I look forward to renewed efforts of diligence and dedication from our talented team during the next quarter as we hit the ground running and assess the opportunities ahead of us,” said Hosack.
The Step Aside Project is located 8km north of the Arcadia Project, and comprises claims rationalised to approximately 100 hectares within the Harare Greenstone Belt, west of the Mashonganyika Fault.
“The potential of the area has been confirmed by positive historical regional stream and soil sample geochemistry results.
“Four mineralized pegmatites have been mapped from east to west within a meta-dolerite host rock. These mineralized pegmatites are all roughly parallel to each other, lying in a north-south orientation and have dip angles of 40-45˚ to the west,” said the miner.
The miner expressed optimism that Project generation activities are under way with the company being well capitalised to identify, assess, invest and then advance those projects that have the potential to meet scale and grade criteria.