Australian Stock Exchange-listed mining group, Prospect Resources Limited, has announced the successful completion of its acquisition of an 85% interest in the Mumbezhi Copper Project, located in Zambia’s renowned Copperbelt region.
The acquisition, which was first announced on April 9, 2024, involves a total consideration of US$6.5 million, comprising US$5.35 million in cash and 7,014,590 ordinary shares in Prospect Resources. The company has already paid US$150,000, with the remaining amount to be settled in the coming days.
Prospect Resources’ Managing Director and CEO, Sam Hosack, expressed his delight at the successful conclusion of the acquisition process, stating that the Mumbezhi Copper Project has the potential to become a high-value, long-life, and high-margin copper-cobalt mining and processing operation.
Hosack added that the company is well advanced in its evaluation of the drilling data and integrated geological datasets on Mumbezhi, and is expected to announce the results in the near term.
He also confirmed that the company is well-funded to complete the transaction and advance the project, with initial drilling and metallurgical test work programs set to commence in Q3 2024.
“We are well advanced in our evaluation of the Orpheus drilling data from the 2021 drill programmes and integrated geological datasets on Mumbezhi.
“Upon the completion of this work, we will announce all results in the near term, as well as providing more granularity on our planned activities for the project during H2 2024.
However, work to date has confirmed the potential of this project and we are excited to commence initial drilling and metallurgical test work programs during Q3 2024. The company is well funded to complete the transaction and advance the project,” Hosack said.
The Mumbezhi Copper Project is considered a highly prospective asset, with the potential to become a significant copper-cobalt mining operation in the region.
The project’s Nyungu deposits have been identified as having “regionally favourable metallurgy and significant exploration upside”.
The company’s shares are expected to be quoted on the Australian Securities Exchange (ASX) following the completion of the acquisition.
Prospect Resources Limited also engages in the exploration, evaluation, and development of mineral resources in Zimbabwe. The company primarily explores for lithium deposits.
Its flagship project is the Arcadia lithium project, which covers an area of approximately 10 square kilometers of granted mining lease located to the east of Harare, Zimbabwe.
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