Prospect Resources takes up ownership of Omaruru project

Prospect Resources Limited has announced that it has executed an agreement with Osino Resources Corporation to acquire its residual 60% interest in Richwing Exploration, the 100% owner of the Omaruru Lithium Project in Namibia.

The agreed consideration for the purchase is a nominal US$75 000 in cash (N$1.42 million). Upon completion, Prospect will hold a 100% interest in Richwing.

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.

Prospect is currently undertaking the Phase 2 exploration programme at Omaruru. The outcomes are also expected to inform the generation of a more detailed and deeper drilling programme.

Attractive price

Prospect’s managing director and CEO, Sam Hosack, said the company was able to purchase the project at an affordable price.

“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,” Hosack said.

“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 added.