American investor to take over Penhalonga gold mine
PROSPECT Resources says Luzich Resources, which recently expressed interest to buy Penhalonga Gold project for US$1 million, has executed the option agreement to own the mine.
Last year, Prospect Resources, which owns the Penhalonga mining operation, announced that it had entered into a binding term sheet with Luzich Resources (Africa) LLC, an affiliate of Luzich Partners LLC, whereby Luzich acquired an option to buy 100 percent of the gold mining project.
In a statement, Prospect Resources, which is currently developing its Arcadia lithium mining project near Harare in Goromonzi, said: “Luzich has executed the option agreement to buy 100 percent of the Penhalonga Gold Project as announced on 23 October 2020 and pay the balance owing of US$750 000 of the US$1 million total agreement
consideration”.
Prospect said US$200 000 of the balance owing has been paid as an additional nonrefundable instalment of the purchase price, and a further US$550 000 would be paid at completion of the sale and purchase agreement within 30 days.
Luzich is a North American multi-strategy private investment company that was formed in 2013, based in Las Vegas.
The company has interests in private and public investments globally across a range of industries including mining.
The Penhalonga Gold project was being sold on a debt free, cash free basis.
Meanwhile, Prospect has started lithium production at its recently developed Arcadia Mine under a pilot plant project.
The company has announced the completion of construction and commissioning of the Arcadia Lithium pilot plant project, marking the commencement of production.
The mining group was now focused on utilising the high purity petalite samples from the pilot plant, and spodumene samples produced in a partner laboratory, to achieve final production qualification with customers.
The company is also progressing engagement with a range of strategic groups in Japan, China and Europe who have an interest in spodumene offtake and assisting with development of the project. — chronicle.cl.zw
