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Prospect Resources (ASX:PSC) has all its time and $2.2 million to put towards progressing the Mumbezhi Copper Project in Zambia after wrapping up the sale of the Step Aside Lithium Project in neighbouring Zimbabwe today.
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Prospect sold Step Aside to Fatima Resources through its Singapore-registered Promin Holdings company, netting US$850,000 today and another $150K in May. The last $1.2M chunk will come in over the next 24 months.
The main reason behind the sale, the Oz explorer has shared several times in the build-up, was lithium’s price “collapse” and a chance to get into copper. Prospect had been working on the lithium project from 2022 to 2024, but slowly became more confident in copper as things turned through CY24.
(There may have been a few more than nervous jitters in Prospect’s boardrooms during the recent lithium revival, but with it hitting a wall in Week 48, this HotCopper writer can only imagine it’s happy days on both sides.)
Whether lithium comes back to the fore in 2026 and beyond or not, Prospect now has Mumbezhi to occupy its time – fairly perfect timing, some might suggest, considering how copper prices have been moving this year. And whether this pivot takes time to pay off or not, Prospect say it’s “very pleased.”
Some of that is because of Prospect keeping some fingers in the pie, of course; that last $1.2M hinges on several specific development milestones Fatima is hoping to hit at Step Aside in its first drilling phases.
“The mineralised system justifies additional drill testing, and future management of Step Aside is in good hands,” Prospect’s managing director Sam Hosack said. “We look forward to seeing how far the project can grow.”
It will only be out of the corner of the eye, though, with Mr Hosack declaring the company would now “focus all attention on the exciting Mumbezhi.”
The explorer will also be looking at Sub-Saharan Africa for other buy-up chances.
Today, PSC shares are 17c each.
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