Prospect disposes Penhalonga Gold Project

20 Dec, 2020 - 00:12 0 Views
Prospect disposes Penhalonga Gold Project Mr Hosack

The Sunday Mail

Business Reporter

Prospect Resources, which is developing the lithium project 38 kilometres East of Harare, is disposing of its non-core assets in the country and has taken an initial payment of US$200 000 for the Penhalonga Gold Project.

Prospect is selling the gold project for US$1 million to United States-based firm, Luzich Partners LLC.

The Penhalonga Gold Project is located in the Mutare Greenstone Belt which extends eastward into Mozambique and is considered to be one of the richest greenstone belts in Zimbabwe in terms of gold production per unit area.

Luzich Partners LLC has paid the non-refundable deposit of US$200 000 in accordance with the option to purchase the Penhalonga Gold Project announced on October 23, 2020.

The American firm will now undertake due diligence on the asset for a period of 180 days and pay further consideration of US$800 000 if it elects to exercise the option.

Said Prospect Resources managing director Sam Hosack: “Prospect is focused on maximising shareholder value by rapidly progressing the Arcadia Lithium Project and extracting value from its non-core assets.

“The funds received strengthen the company’s balance sheet at a time when sentiment in the lithium market is improving and the opportunity for Prospect to become the next producer in the market is presenting itself.”

Luzich Partners LLC is a Las Vegas-based multi-strategy private investment firm formed in 2013. It seeks investments in public and private investments globally across a range of industries including mining.

The Penhalonga Gold Project is located opposite Metallon’s Redwing Gold Mine that has produced 3,6 Moz Au to date (remaining resources of 2,5 Moz Au) and has restarted production following a period of care and maintenance.

The Australia-based company is developing the Arcadia Lithium mining project in Goromonzi near Harare.

The Arcadia Lithium project has been touted as having the potential to become the largest lithium project on the continent.

Based on the proposed 2,4 Mtpa mining and processing operation, the DFS                 indicates that Arcadia will be a strong financial, high margin project with current forecast Life Of Mine (LOM) revenue of US$2,93 billion and average annual EBITDA of US$106 million over an estimated 12-year mine life.

In 2017, the Government granted the company National Project Status to develop Arcadia.

The project is the largest lithium deposit in Africa comprising 808 000 tonnes of lithium oxide.

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