Prospect gains access to Zambia copper project data through the Orpheus Uranium deal
Prospect Resources Limited (PSC: ASX, 5E8:FRA) has announced the completion of a deal with Orpheus Uranium Limited (ASX: ORP) following the satisfaction of agreed-upon conditions. This agreement grants Prospect access to valuable data to advance their Mumbezhi Copper Project in Zambia.
The public announcement of the agreement between Prospect Resources and Orpheus Uranium was made on April 9, 2024. Prospect paid Orpheus A$1.0 million in fully paid PSC shares as partial reimbursement of prior exploration expenditure, along with three options to acquire ordinary PSC shares for every four shares issued, at 15 cents per share, expiring three years after issue.
Upon the definition of a JORC-reportable Mineral resource exceeding 500,000 tonnes of contained copper metal, Prospect will also make a milestone payment of A$2.5 million to Orpheus.
On May 3, 2024, the Company issued 8.3 million ordinary shares in Prospect at an issue price of $0.12 per share (the issue price is equal to the 5-day VWAP on the date the condition precedent was satisfied). The Company also issued 6,250,000 unlisted options to acquire ordinary shares in Prospect at $0.15 per share, expiring on April 11, 2027.
According to Prospect’s Managing Director and CEO, Sam Hosack,
“The satisfaction of the Conditions Precedent with Orpheus Uranium results in the Prospect team owning all existing mining and geological data from Orpheus/Argonaut, a significant first step in Prospect’s understanding of the opportunity presented by the Mumbezhi Copper Project in Zambia.”
“We are now processing, cataloguing, analyzing, and benefiting from a far larger volume of digital data and physical drill core materials sourced over a decade of exploration by Orpheus/Argonaut, and we thank the Company for the seamless way in which the data transfer occurred.”
“The physical materials have been very well preserved and ordered in such a manner that will facilitate Prospect’s timely review of all the purchased data to deliver a maiden copper mineral resource estimate for Mumbezhi during Q3 2024.”
“Now the corporate team is fully focused on completing the transaction with GDC to close out the separate Conditions Precedent for our 85% interest in the Project license by the end of May.”