HomeBusinessProspect inches close to US$1m deal

Prospect inches close to US$1m deal

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BY MTHANDAZO NYONI

AUSTRALIA-LISTED mining concern, Prospect Resources, says Luzich Resources Africa, an affiliate of Luzich Partners LLC, has executed the option agreement to buy 100% of its Penhalonga gold project for US$1 million.

In October 2020, the African lithium developer announced that, in line with its strategy to extract value from non-core assets, it had entered into a binding term sheet with Luzich Resources (Africa) LLC, whereby Luzich acquired an option to buy 100% of Penhalonga the gold project.

Under the deal, Luzich was supposed to pay a non-refundable deposit of US$200 000 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.

The Penhalonga gold project is being sold on a debt free, cash free basis.

Completion of the transaction was subject to Luzich being satisfied with its due diligence investigations, and Prospect obtaining all necessary regulatory consents and approvals and normal commercial terms and warranties associated with a transaction of this nature.

In an update yesterday, Prospect revealed that Luzich would be paying the balance of the agreed funds.

“Prospect Resources Limited is pleased to announce  that Luzich Resources (Africa) LLC, an affiliate of Luzich Partners LLC, has executed the option agreement to buy 100% of the company’s Penhalonga gold project as announced on 23 October 2020 and pay the balance owing of US$750 000 of the US$1 000 000 total agreement consideration,” the company said in a statement.

Prospect said US$200 000 of the balance owing had been paid as an additional non-refundable installment of the purchase price, and a further US$550 000 will be paid at completion of the sale and purchase agreement within 30 days.

Luzich Partners is a Las Vegas-based multi-strategy private investment firm founded in 2013.

It seeks investments in public and private sectors globally across a range of industries, including mining.

Penhalonga is located in the Mutare Greenstone Belt, which extends eastward into Mozambique and is considered to be one of the richest gold  greenstone belts in Zimbabwe.

Prospect appears to be putting more effort in developing its multimillion lithium mine at Arcadia, about 60 kilometers north east of Harare, for now.

Significant developments have taken place since the firm began developments about six years ago, with first samples having been sent to the international markets early this year.

Follow Mthandazo on Twitter @MthandazoNyoni

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