Prospect sells Zimbabwe lithium project to focus on Zambia copper
Australian mining company Prospect Resources Limited will exit Zimbabwe after agreeing to transfer its Step Aside Lithium Project to Fatima Resources Pty Ltd for as much as $2.2 million. The transaction allows Prospect to concentrate on copper development in Zambia after previously divesting the nearby Arcadia Lithium Mine to Chinese battery materials producer Zhejiang Huayou Cobalt Co Ltd during 2022 for $422 million.
Fatima Resources will pay an initial $850,000 at closing with another $150,000 due six months later. An additional $1.2 million becomes payable if the purchaser meets performance targets within two years after completion, such as securing binding sales contracts or upgrading mineral reserves. The deposit sits approximately 35 kilometers east of Harare within the Archaean Harare Greenstone Belt across roughly 100 hectares. Prospect announced high-grade lithium discoveries at Step Aside during May 2023.
Chief executive Sam Hosack said funds from the disposal will support the expansion of the Mumbezhi Copper Project in northwestern Zambia, where Phase 2 drilling nears completion ahead of updated resource estimates later this year. Nurture Capital Zimbabwe managed the sales process for Prospect, which retains no active operations in Zimbabwe following the divestment.
