Prospect acquires 100% of Omaruru Lithium

Sam Hosack

Prospect Resources Limited (ASX: PSC) has announced the execution of an agreement with Osino Resources Corp. (OSI.TSXV) (Osino) to acquire Osino’s residual 60% interest in Richwing Exploration (Pty) Ltd (Richwing), which holds a 100% ownership of the Omaruru Lithium Project (Omaruru) in Namibia.

Patricia Rwafa

Consolidation facilitated by the recently announced gold-focused combination transaction between Osino Resources and Yantai Gold. Phase 2 drilling at Omaruru is progressing well, with all assay results expected to be available by late April.

The agreed consideration for the purchase is a nominal US$75,000 cash. Upon completion, Prospect will hold a 100% interest in Richwing (and thus Omaruru). Key conditions precedent to completion are administrative and not material to completion.

The agreement for Prospect to purchase Osino’s residual interest in Omaruru has been precipitated by the recently announced combination transaction between Osino and Yantai Gold, which is focused on Osino’s flagship Twin Hills Gold Project in Namibia.

In an update released on 30 August 2023, the program also includes further targeting of the root zone feeder system identified on the southeast flank of Karlsbrunn Main, which previously returned 35m @ 0.85% Li2O from the surface.

The results from the Phase 2 program are expected to further define the geometry, depth, and strike extent of key lithium-mineralized pegmatites. The outcomes are also expected to inform the generation of a more detailed and deeper RC drilling program, which is targeted at a potential JORC-reportable lithium Mineral Resource estimate during 2024.

In addition, on 15 November 2023, Prospect was currently undertaking the Phase 2 exploration program at Omaruru (approx. 4,250m of RAB and RC drilling). This program has been designed to target prospective geochemical anomalies at Karlsbrunn SE, Karlsbrunn NE, and Bergers Central, identified in field programs conducted through CY2023.

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According to Sam Hosack, Prospect’s Managing Director and CEO, “We are delighted to have opportunistically acquired the residual interest in Omaruru at such an attractive purchase price.

This transaction has been predominantly driven by the recently announced combination deal between Osino and Yantai for the Twin Hills Gold Project, with the bidder focused on the acquisition of a clean gold asset.

We look forward to completing this transaction and moving to 100% ownership of Omaruru, at the same time as we continue to advance our rigorous exploration and evaluation activities at the Project.

Owning the asset 100% frees us up from the earn-in joint venture and we can pace exploration to suit our needs,” he said.

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