Prospect Resources has acquired Richwing Exploration from Osino Resources for N$1.4 million (US$75,000) in cash.
Richwing Exploration holds the rights to the Omaruru Lithium Project, in which Prospect Resources is the majority shareholder.
The Omaruru Lithium Project (Omaruru), comprising the EPL 5533 tenement, is centered on the village of Wilhelmstal, east of Karibib in Namibia, covering 131 square kilometres.
The tenement is near several advanced mining projects, including Yantai Gold’s Twin Hills Gold Project and Lepidico’s Karibib Lithium Project.
Prospect Resources CEO Sam Hosack said the recently announced deal between Osino Resources and Yantai for the Twin Hills Gold Project predominantly drove his company’s acquisition of Richwing Resources.
“We look forward to completing this transaction and moving to 100% ownership of Omaruru while continuing to advance our rigorous exploration and evaluation activities at the project.
“Owning the asset 100% frees us from the earn-in joint venture, and we can pace exploration to suit our needs,” Hosack said.
Prospect Resources signed an earn-in agreement regarding the Omaruru project with Osino Resource in September 2022.
The agreement stated that Prospect would earn a 40% interest in the project after paying US$1 million—US$560.000 in cash payments for 20% and US$440.000 for 20%—within one year.
According to the agreement, Prospect Resources would earn 11% to reach 51% after paying another US$560.000 within the second year.
Additionally, the agreement states that after acquiring 51% of the shareholding, Prospect Resources would ultimately determine and manage all exploration activities related to the project, including keeping the project in good standing.
