Govt approves exploration deal
CLOUDINE MATOLA
Cabinet has approved the proposed partnership between the Mining Promotion Corporation (MPC) and Prospect Brooke Resources (PVT)Ltd to carry out exploration and mine development in Goromonzi, Mashonaland East Province, Business Times can report.
MPC is a state owned enterprise that conducts mineral exploration and development for national strategic minerals. And Prospect Brooke Resources is a Zimbabwean based private company.
Speaking at a post-Cabinet media briefing this week, Information minister Jenfan Muswere said: “Cabinet considered and approved the Proposed Partnership between the Mining Promotion Corporation and Prospect Brooke Resources (Pvt) Ltd to Conduct Exploration and Mine Development over Arcturus Exclusive Prospecting Order Number 1842.
“The joint venture seeks to prospect and explore for lithium and pegmatite minerals on 52 600 hectares in Goromonzi,” Muswere said.
He said Prospect Brook Resources was in a strong position both technically and financially to handle the project which is expected to start once both partners signed the agreement.
“Prospect Brooke Resources has demonstrated technical and financial capacity to undertake the project, and exploration is expected to commence once the Joint Venture Agreement is signed by the parties,” Dr Muswere said.
He added:”Prospecting and exploration are estimated to take not more than five years from the commencement date. The Joint Venture shareholding structure will be renegotiated after the exploration stage if the project proceeds to mine development and commences mining activities.”
Prospect Brooke Resources is the major shareholder in this joint with 70% shareholding while the Mining Promotion Corporation holds 30%.
In addition, during the exploration stage, Prospect Brook is going to pay for the exploration and a purpose vehicle will be established.
“In terms of the Agreement, a special purpose vehicle, the MPC JV, will be established in which Prospect Brooke Resources shall hold 70% shareholding and the Mining Promotion Corporation 30% at the exploration stage.
Prospect Brooke Resources will mobilize the entire amount required for exploration, and Mining Promotion Corporation is not expected to make any financial contribution towards this stage,” Minister Muswere said.
