US$1 million deal for Penhalonga Gold Project

AFRICAN lithium developer, Prospect Resources, which is seeking to extract value from its non-core assets, has granted Luzich Resources an option to buy Penhalonga Gold Project for US$1 million.

Prospect Resources, which is developing its Arcadia lithium mining project near Harare, announced the development in a recent statement.

“The company is pleased to announce that in line with its strategy to extract value from non-core assets, it has entered into a binding term sheet with Luzich Resources (Africa) LLC, an affiliate of Luzich Partners LLC, whereby Luzich has acquired an option to buy 100 percent of the company’s Penhalonga Gold Project for US$1 million,” it said.

Luzich is a North American multi-strategy private investment company that was formed in 2013, based in Las Vegas.

The firm has interests in investments in private and public investments globally across a range of industries including mining. Prospect said the transaction details with Luzich Resources are broken down as non-refundable deposit of US$200 000 to be paid within 45 days of the date of the agreement; and US$800 000 within 180 days commencing from the payment of the non-refundable deposit. Prospect said the Penhalonga Gold Project was being sold on a debt free, cash free basis. The completion of the transaction was subject to Luzich being satisfied with its due diligence investigations with Prospect obtaining all necessary regulatory consents and approvals, normal commercial terms and warrants associated with a transaction of this nature.

Prospect Resources managing director, Mr Sam Hosack, said: “It is good news to see a North American investor of Luzich Partners’ status investing in Zimbabwe. It is further evidence that Zimbabwe is becoming an attractive international investment destination”.

The Second Republic, which came into power in November 2017 led by President Mnangagwa has declared that “Zimbabwe is open for business,” a policy adopted to attract investors from across the globe.

“Prospect is focused on taking the Arcadia Lithium Project into production as soon as possible,” said Mr Hosack.

He said the agreement allows Prospect to extract value from its non-core assets and further strengthen the firm’s balance sheet.

“Proceeds from the sale of the Penhalonga Gold Project will be applied to this aim,” he said. Meanwhile, the lithium developer announced recently that it had raised $6 million for developing a pilot plant to produce low iron spodumene and high purity petalite samples. In August this year, the mining group announced that assaying results have confirmed that the company has potential to become the world’s only supplier of premium glass and ceramics market. — chronicle.co.zw