Prospect Resources Limited has completed the sale of its Step Aside Lithium Project in Goromonzi to Fatima Resources Pty Ltd for up to US$2.2 million, marking another strategic transaction for the company in Zimbabwe’s evolving lithium sector, Mining Zimbabwe can report.
By Rudairo Mapuranga
The sale, executed through a Share Sale and Purchase Agreement, transfers ownership of Prospect’s Singapore-registered subsidiary, Promin Resource Holdings Pte Ltd, which holds a 90% interest in the Step Aside Project located 35 kilometres east of Harare. The transaction represents Prospect’s continued portfolio optimisation following their previous sale of the flagship Arcadia Lithium Mine to Chinese battery materials giant Zhejiang Huayou Cobalt for US$378 million in 2022.
The decision to divest from Step Aside comes as Prospect sharpens its focus on the Mumbezhi Copper Project in northern Zambia, signalling a strategic shift toward copper exploration amid changing market conditions for battery metals. Company management noted that the sale allows them to concentrate resources and capital on what they view as a more significant opportunity in the copper space, while also simplifying their corporate structure and reducing overhead costs.
Prospect Resources CEO Sam Hosack commented on the strategic rationale: “We are satisfied with the outcome of this sale agreement with a reputable company with extensive operating experience in Zimbabwe. This transaction offers us both upfront cash return and future upside to subsequent exploration success and value growth at Step Aside.”
The sale agreement is structured to provide both immediate and potential long-term value to Prospect Resources:
The final potential payment of up to US$1.2 million is contingent upon Fatima Resources achieving specific development milestones within 24 months, which may include securing binding offtake agreements, successfully upgrading the project’s Mineral Resource estimate, or completing a future sale transaction valuing the project at more than US$5 million.
The Step Aside Lithium Project covers approximately 100 hectares within the Archaean Harare Greenstone Belt, just 8 kilometres north of the producing Arcadia Lithium Mine. The project has been the subject of extensive exploration between 2022 and 2024, with four phases of mixed RC and diamond drilling programs confirming multiple high-grade lithium intersections across six visible mineralised pegmatites.
Technical work at the site led to the discovery of an additional lithium mineralised pegmatite dubbed “WinBin” in October 2023, with subsequent drilling demonstrating thickened, deep-set lithium mineralisation that connects to an extension of Pegmatite C, forming an arcuate system striking over at least 580 meters that remains open at depth.
Intersection | Lithium Grade | Depth | Pegmatite
63.1m | 1.17% Li₂O | from 74.9m | WinBin
17.0m | 1.54% Li₂O | from 52.0m | WinBin
15.3m | 1.25% Li₂O | from 179.9m | Pegmatite E
13.0m | 1.68% Li₂O | from 75.5m | WinBin
7.4m | 1.28% Li₂O | from 43.6m | Pegmatite E
The project benefits from excellent infrastructure with access to roads, power, and water systems, and is already permitted for mining, pending only environmental approvals. The lithium mineralisation is predominantly spodumene-bearing, with pegmatites running parallel to each other in a north-south orientation.
This transaction continues Prospect’s established “explore-develop-sell” strategy that the company successfully applied with its nearby Arcadia Mine. While Step Aside showed considerable potential, the company decided to pare back activities at the project to minimum holding commitments following the decline in global lithium prices, choosing instead to redirect capital toward its Zambian copper assets.
An industry analyst familiar with the transaction described it as “smart capital allocation in volatile commodity markets,” noting that “Prospect’s ability to monetise non-core projects gives it flexibility to pursue higher-value opportunities.” The deal represents a disciplined approach to portfolio management that allows the company to maintain some exposure to Step Aside’s future upside through the milestone-linked payments while freeing up resources for what management views as more promising opportunities.
The sales process was managed by Nurture Capital Zimbabwe, a Harare-based financial services firm providing asset management, private equity, and corporate advisory solutions across sub-Saharan Africa. Prospect indicated that proceeds from the sale will be channelled directly into advancing ongoing exploration activities at Mumbezhi, including a Phase 2 drilling program, and evaluating other copper opportunities within Zambia.
Zimbabwe continues to establish itself as a significant player in the global lithium sector, with substantial hard-rock lithium deposits making the country a critical node in the supply chain for electric vehicle batteries and energy storage systems. The country has seen growing interest from international investors, particularly Chinese companies that have invested over US$400 million in local lithium projects since 2023.
The government has positioned lithium development as a priority, with the Minister of Mines recently stating that lithium projects would receive priority support, potentially including exemptions under the Indigenisation Policy. With more than 60 lithium exploration licenses issued in the past five years, Zimbabwe is actively working to build its reputation as Africa’s “green metal” powerhouse.
As Prospect Resources turns its attention fully to copper development in Zambia, the future stewardship of the Step Aside Lithium Project falls to Fatima Resources, a private company described as having extensive local operational experience in Zimbabwe. With the mineralised system justifying additional drill testing, according to Prospect’s CEO, the project’s potential remains to be fully unlocked by its new owners.
The transaction demonstrates continued investor confidence in Zimbabwe’s lithium sector despite recent volatility in global lithium prices and showcases the strategic decisions mining companies are making to navigate the evolving battery metals landscape. As Hosack noted: “We believe the future stewardship of Step Aside is in good hands and look forward to seeing just how far the project can continue to grow.”
