Step Aside Sale Signals Prospect’s Risky Pivot from Lithium to Copper Focus

Strategic Sale of Step Aside Lithium Project

Prospect Resources Limited (ASX – PSC) has entered into a Share Sale and Purchase Agreement to divest its Step Aside Lithium Project in Zimbabwe for a total consideration of up to US$2.2 million. The transaction involves an initial upfront payment of US$850,000, a deferred payment of US$150,000 six months after completion, and a further contingent payment of up to US$1.2 million based on the buyer achieving key development milestones within two years.

The buyer, Fatima Resources Pty Ltd, is a private company with operational experience in Zimbabwe, and will acquire Prospect’s Singapore-registered subsidiary holding a 90% interest in the project. This move simplifies Prospect’s corporate structure and reduces overhead costs, while allowing the company to focus on its more substantial copper assets.

From Lithium to Copper – A Strategic Pivot

Step Aside had been actively developed by Prospect with exploration drilling from 2022 to 2024, revealing spodumene-bearing lithium mineralisation within pegmatite bodies. However, the collapse in lithium prices and the company’s strategic pivot towards copper has shifted attention to the Mumbezhi Copper Project in northern Zambia.

Proceeds from the sale will be reinvested into advancing exploration at Mumbezhi and evaluating other copper opportunities in Zambia. Prospect’s CEO, Sam Hosack, highlighted the company’s confidence in the buyer’s stewardship of Step Aside and expressed optimism about the project’s potential growth under new ownership.

Project Location and Potential

Located approximately 35 kilometres east of Harare, Zimbabwe, Step Aside sits within the Archaean Harare Greenstone Belt and benefits from proximity to infrastructure such as roads, power, and water. It lies just 8 kilometres north of the Arcadia Lithium Mine, a world-class operation initially discovered and developed by Prospect before its sale in 2022 for US$378 million.

While Step Aside is a relatively small claim, its mineralisation remains open in multiple directions and at depth, suggesting further exploration upside. The buyer plans to continue drilling programs to unlock this potential.

Looking Ahead

Prospect Resources is nearing completion of Phase 2 drilling at Mumbezhi, with a resource update expected later this year. The company’s renewed focus on copper aligns with broader market trends favouring base metals critical to electrification and infrastructure development.

By divesting Step Aside, Prospect not only streamlines its asset base but also positions itself to capitalise on copper’s rising demand, potentially delivering greater shareholder value in the medium term.