Cabinet Approves MPC and Prospect Brooke Resources Exploration Deal in Arcturus
The Minister of Information, Hon. Jenfan Muswere, has announced that the Cabinet of Zimbabwe has approved a proposed partnership between the Mining Promotion Corporation (MPC) and Prospect Brooke Resources (Pvt) Ltd. This partnership aims to conduct exploration and mine development over the Arcturus Exclusive Prospecting Order Number 1842.
According to Muswere, the joint venture seeks to explore for lithium and other minerals found within pegmatite rock as the country strives to become a leader in Africa’s green revolution.
Muswere stated that MPC, which will not bear any financial obligations towards the exploration of the resources, will hold a 30% stake in the project, while Prospect Brooke Resources will hold the remaining 70%.
“Cabinet considered and approved the proposed partnership between the Mining Promotion Corporation and Prospect Brooke Resources (Pvt) Ltd to conduct exploration and mine development over the Arcturus Exclusive Prospecting Order Number 1842, as presented by the Minister of Finance, Economic Development and Investment Promotion, Honourable Professor Mthuli Ncube.
“The joint venture seeks to prospect and explore for lithium and pegmatite minerals on 52,600 hectares in Goromonzi, Mashonaland East Province. Prospect Brooke Resources (PBR) is a Zimbabwean-based private company incorporated under the Companies and Other Business Entities Act [Chapter 24:31]. In terms of the agreement, a special purpose vehicle, the MPC JV, will be established in which Prospect Brooke Resources shall hold 70% shareholding and the Mining Promotion Corporation 30% at the exploration stage. Prospect Brooke Resources will mobilize the entire amount required for exploration, and the Mining Promotion Corporation is not expected to make any financial contribution towards this stage.
“Prospect Brooke Resources has demonstrated the technical and financial capacity to undertake the project, and exploration is expected to commence once the Joint Venture Agreement is signed by the parties. Prospecting and exploration are estimated to take no more than five years from the commencement date. The Joint Venture shareholding structure will be renegotiated after the exploration stage if the project proceeds to mine development and commences mining activities.
“The Joint Venture Agreement is in line with the Standing Policy on Public-Private Partnerships,” Muswere said.