Australia Stock Exchange–listed miner Prospect Resources Limited has struck another key transaction in Zimbabwe, announcing the sale of its Step Aside Lithium Project for up to US$2,2 million — the company’s second major exit from a lithium asset in three years.
Prospect said this week it had executed a Share Sale and Purchase Agreement with Fatima Resources, a private firm with extensive operating experience in Zimbabwe. The agreement covers the sale of Prospect’s Singapore-registered subsidiary, Promin Resource Holdings Pte Ltd, which owns a 90% stake in the Step Aside Project located about 35 kilometres east of Harare.
The deal gives Prospect an immediate US$850 000 in cash, with another US$150 000 due six months after completion.
An additional US$1,2 million could be paid within 24 months if Fatima Resources achieves specified development milestones, including upgrades to mineral resources or entering binding offtake agreements valued above US$5 million.
The sale represented another step in Prospect’s “explore–develop–sell” strategy, which it applied when it hived out of the nearby Arcadia Mine, another lithium asset.
The company previously developed and then sold its flagship Arcadia Lithium Mine, located just eight kilometres from Step Aside, to Chinese battery materials giant Zhejiang Huayou Cobalt for US$378 million in 2022.
Arcadia remains one of the region’s largest lithium operations.
“This transaction offers us both upfront cash return and future upside to subsequent exploration success and value growth at Step Aside,” managing director and chief executive officer Sam Hosack said.
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“The project showed classic spodumene-bearing lithium mineralisation, and we believe its future stewardship is in good hands. We can now focus on the very exciting Mumbezhi Copper Project in Zambia, while simplifying our corporate structure and reducing overheads.”
Proceeds from the sale will go toward advancing exploration at Mumbezhi in Zambia’s northwest, where Phase 2 drilling is nearing completion ahead of a planned resource update later this year.
Prospect said it would also use part of the funds to evaluate other copper opportunities in the country, a pivot that aligns with the global shift toward critical minerals and renewable energy infrastructure.
The sale 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.
The Step Aside project covers roughly 100 hectares in the Archaean Harare Greenstone Belt, a highly prospective geological zone rich in pegmatites that host lithium-bearing minerals such as spodumene and petalite.
It enjoys strong logistical advantages, with access to roads, power, and water infrastructure. The project is permitted for mining, pending environmental approvals, and already has land access agreements in place.
Exploration work between 2022 and 2024 confirmed multiple mineralised pegmatite systems open in several directions and at depth. However, the downturn in global lithium prices over the past year prompted Prospect to rebalance its portfolio and redirect capital toward its Zambian assets.
One analyst described the transaction as “smart capital allocation in volatile commodity markets,” noting Prospect’s ability to monetise non-core projects gives it flexibility to pursue higher-value opportunities.
“It’s a demonstration of disciplined portfolio management,” the analyst said. “The company is exiting a smaller, secondary asset while maintaining exposure to future upside through milestone-linked payments.”
For Zimbabwe, the Step Aside sale reflects continued investor interest in its lithium sector despite a softer global market.
The southern African country sits on some of the world’s most promising hard-rock lithium deposits, making it a critical node in the global supply chain for electric vehicle (EV) batteries and energy storage systems.
Lithium demand has grown exponentially over the past decade, driven by the accelerating shift toward electric mobility and clean energy technologies.
Prices for lithium carbonate surged nearly tenfold between 2020 and 2022 before correcting in 2023 and 2024 as new supply came on stream from Australia, Chile, and China.
Still, analysts expect long-term demand to remain robust as automakers continue ramping up EV production and Western governments push for reduced carbon emissions.
Zimbabwe’s emergence as a regional lithium hub began with discoveries at Arcadia, Bikita, Kamativi, and Sabi Star, among others, attracting Chinese, Australian, and British investors.
With more than 60 lithium exploration licences issued in the past five years, the government is positioning the country as Africa’s “green metal” powerhouse.
However, it continues to face challenges around infrastructure, policy consistency, and downstream processing capacity.
Prospect Resources has been central to this evolving story.
The company first entered Zimbabwe in the mid-2010s and rose to prominence after successfully developing Arcadia from exploration to sale. The unlocked renewed confidence in the country’s minerals sector.
