Prospect secures $9.5m from First Quantum for Mumbezhi Copper Project in Zambia

0 2 minutes read

Prospect secures .5m from First Quantum for Mumbezhi Copper Project in Zambia — Prospect secures 95m from First Quantum for Mumbezhi Copper Project.jpeg

Prospect Resources, an Australian mining company, has recently entered into a strategic investment agreement with First Quantum Minerals (FQM), a prominent copper miner. This deal will see FQM investing approximately A$15.2 million ($9.5 million) in equity by acquiring 101.06 million new shares at A$0.15 each. As a result of this investment, FQM will hold a 15% stake in Prospect Resources and will play a crucial role as a technical partner in the development of the Mumbezhi Copper Project in Zambia.

The partnership with FQM is significant for Prospect Resources as it not only brings in much-needed funding but also provides access to FQM’s expertise in copper mining and processing. FQM’s track record in Zambia, particularly at the Sentinel and Kansanshi copper mines, makes them a valuable partner for Prospect as Mumbezhi is located in a similar geological setting to Sentinel.

With the financial support from FQM, Prospect is gearing up to kick off its phase two drilling program at Mumbezhi in the second quarter of 2025. This initiative aims to expand the mineral resource estimates and identify new exploration targets in the region. Sam Hosack, the managing director and CEO of Prospect, expressed his enthusiasm about the collaboration with FQM, highlighting the mutually beneficial opportunities that lie ahead for both companies.

In addition to the investment from FQM, Prospect has also secured approximately A$2.8 million in funding from Eagle Eye Asset Holdings, which will further strengthen its financial position. The combined funds raised from these investments will be utilized to support ongoing activities at Mumbezhi and enhance Prospect’s working capital.

Azure Capital served as the financial adviser for Prospect in facilitating these strategic investments, while legal counsel was provided by King & Wood Mallesons. Hosack emphasized the company’s commitment to working closely with FQM and Eagle Eye in pursuit of identifying new copper assets in Zambia, contributing to the country’s goal of producing three million tonnes of copper by 2031.

This recent development comes on the heels of First Quantum Minerals’ decision to suspend arbitration proceedings against Panama with regards to its Cobre Panama mine. The collaboration between Prospect Resources and FQM marks a significant step forward in the exploration and development of the Mumbezhi Copper Project, setting the stage for potential growth and success in the region.

This article was originally published by Mining Technology, a GlobalData owned brand, under the title “Prospect secures $9.5m from First Quantum for Mumbezhi Copper Project in Zambia.”