Prospect Resources has made significant strides in the Omaruru Lithium project earn-in and shareholders agreement, having paid Osino Resources about N$24.4 million (US$1.286.584) out of N$29.6 million (US$1.56 million) as part of the agreement signed on October 27, 2022.
The company is short of N$4.8 million.
Osino Resources subsidiary Richwing Exploration holds the Omaruru Lithium Project EPL 5533, centred on the village of Wilhelmstal, east of Karibib.
The Omaruru project has lithium, tin, tantalum, rubidium, and caesium targets, including 60 Lithium-Caesium-Tantalum (LCT) pegmatite outcrops visible at the surface.
Prospect Resources is an ASX-listed company focused on exploring and developing mining projects in Zimbabwe and the broader sub-Saharan African region, specifically battery and electrification metals.
The company owns Belham Investments Limited Exploration & Evaluation Namibia.
The October 2022 agreement states that Prospect Resources should invest US$1 million for 40% in phase 1, and phase 2 will see an investment of N$10.6 million (US$560,000) for a further 11% in phase 2.
Phase one consists of a N$10.6 million (US$560,000) cash payment to acquire 20% and a commitment to spend a further N$8.4 million (US$440,000) on the project within one year to earn 20%.
After completing phase 1 and proceeding to phase 2, Prospect would commit a further N$10.6 million (US$560,000) within 12 months for in-ground exploration to reach 51% ownership in the project.
In its half-year financial report released on March 5, 2024, Prospect Resources says that as at June 30, 2023, it had paid the initial investment of N$10.6 million (US$560,000) and funded a total of N$7.9 million (US$416,584) of the phase 1 earn-in expenditure to earn a 20% shareholding in Richwing Exploration.
According to Prospect Resources, the remaining funding for the phase 1 earn-in expenditure during the current period was fulfilled, and the remaining funding for the phase 1 earn-in expenditure received an additional 20% interest.
Reaffirming its commitment, Prospect Resources has elected to fund the phase 2 earn-in expenditure and has already financed N$5.9 million (US$310,000) as of December 31, 2023.
Prospect Resources still has to pay N$4.8 million (US$250.000) for phase 2.
