Prospect Acquires 85% of the advanced copper-cobalt project in Zambia
Prospect Resources Limited has acquired an 85% interest in the Mumbezhi Copper Project in Zambia, solidifying its position in the battery and electrification mineral sector in Africa.
Patricia Rwafa
Managing Director and CEO Sam Hosack highlighted the significance of this acquisition, emphasizing the project’s potential for a world-class, long-life, open-pit copper-cobalt operation.
Under the agreements, Prospect will pay approximately US$5.5 million in cash and US$1 million in scrip to Global Development Cooperation Consulting Zambia Limited (GDC) for the acquisition. Additionally, Prospect will settle approximately $1 million in scrip plus options to Orpheus Uranium Limited (ORP) for select exploration costs on Mumbezhi, aiming to withdraw all legal claims and gain access to historical geological and mining data.
Hosack expressed optimism about the project’s prospects, citing the extensive drilling completed by ORP and the favorable metallurgy in the region. He noted Zambia’s strong history in the resources sector, particularly for copper, highlighting the existing infrastructure and government support.
The Mumbezhi Copper Project is strategically located near established copper mines like Sentinel and Kansanshi, providing Prospect with a well-capitalized opportunity to advance exploration rapidly. Hosack indicated that this acquisition aligns with Prospect’s strategy to diversify its portfolio amid subdued lithium markets, positioning Mumbezhi as a potential flagship project with substantial exploration upside.
Commenting on the development, Prospect’s Managing Director and CEO, Sam Hosack said,
“The purchase agreements we have struck for the highly prospective Mumbezhi Copper Project which includes the Nyungu deposits, represent a significant milestone, which extends our reach into the battery and electrification mineral sector in Africa,”
‘The Nyungu deposits have all the potential ingredients of a world-class, long-life, open pittable, copper-cobalt mining and processing operation, with regionally favourable metallurgy and significant exploration upside. Zambia is also a leading jurisdiction to explore and develop mining operations in sub-Saharan Africa, having a long-standing history in the resources sector, particularly for copper. I personally have spent over five years in this part of Zambia during my career and have firsthand experience of the excellent infrastructure and strong support from both the government and community, with major companies like Barrick Gold, First Quantum Minerals and KoBold Metals already calling it home,”
The Project also offers excellent potential to deliver significant new, high-value copper-cobalt discoveries. Subject to the satisfaction of all relevant conditions precedent, this acquisition is set to deliver a high-quality, advanced copper exploration play into our portfolio – which is an exciting proposition.”
“The timing of this push into copper is ideal as markets for lithium remain subdued. Our current drilling program at Step Aside is nearing completion and the acquisition of 100% of Omaruru gives us much more flexibility with cash spend, allowing a real focus on aggressively drilling Mumbezhi. We remain committed to our strategy and think the long term potential of lithium remains robust but we are excited to add copper to our portfolio as it provides diversification and this new project holds the potential to rapidly develop into the flagship project we have been seeking.”