First Quantum Minerals, a global copper miner, is strategically investing $15.2 million in Prospect Resources to bolster exploration efforts at the Mumbezhi Copper Project in Zambia. This investment involves First Quantum acquiring 101.06 million shares at $0.15 per share, a 36% premium over the previous closing price, securing a 15% stake in Prospect Resources and the right to appoint a board member.
Prospect Resources will allocate at least US$2.5 million towards exploration work at Mumbezhi, initiating a phase two drilling program this quarter. This program will assess regional targets at Nyungu North, Nyungu South, and West Mwombezhi, aiming to expand the recently estimated resource base of 107.2 million tonnes at 0.5% copper, containing 514,600 tonnes of copper. Prospect CEO Sam Hosack highlights the investment’s significance, noting First Quantum’s regional expertise and the validation of Mumbezhi’s potential, which is geologically similar to First Quantum’s Sentinel operations in Zambia.
In addition to First Quantum’s investment, Prospect Resources has also entered into a separate agreement with Eagle Eye Asset Holdings to raise $2.8 million, subject to shareholder approval. These funds will support ongoing activities at Mumbezhi and provide general working capital. Prospect Resources is focused on developing the Mumbezhi Copper Project and sees this investment as a significant step toward realizing its potential.
