Zambia has a New Player in the Mining Space - Prospect Resources Limited Enters Mining Arena

Zambia now has a new mining prospect with the recent announcement by Prospect Resources continues to grow its battery minerals presence in sub-Saharan Africa. Prospect Resources Limited is an Australian-based mineral exploration and development company focussed on opportunities in critical battery and electrification metals.

“Prospect Resources Limited (ASX:PSC) (Prospect or the Company) is pleased to announce that it continues to grow its battery minerals presence in sub-Saharan Africa by executing two separate Sale and Purchase Agreements to acquire the highly prospective Mumbezhi Copper Project (Mumbezhi or the Project), located in the Zambian Copperbelt in north-western Zambia”, read the official press release from the company issued on 9th April 2024.

According to an article published in The Australian on 9th April 2024, “Although the project was acquired by Prospect Resources (ASX:PSC) from current owner, Global Development Cooperation Consulting Zambia (GDC), Mumbezhi was previously explored by Orpheus Uranium (ASX:ORP), whose work turned up impressive near-surface diamond drilling widths from the Nyungu deposits”. 

Financial Insight understands that the deal is at an advanced stage subject to satisfaction or waiver of all Conditions Precedent (CPs). 

Some of the conditions that Prospect has agreed to include:

Acquiring an 85% interest in Mumbezhi from current owner, Global Development Cooperation Consulting Zambia Limited (GDC), for approx. US$5.5 million in cash and US$1m Prospect scrip (priced at a 20% premium to 5-day VWAP upon all CPs being satisfied).

Paying approx. $1 million in Prospect scrip plus options to Orpheus Uranium Limited (ORP) as reimbursement of select exploration costs on Mumbezhi, with ORP agreeing to withdraw all legal claims to the exploration licence and share all historical geological and mining data pertaining to the Project.

According to the Prospect’s Managing Director and CEO, Sam Hosac, “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 Zambian team will be led by experienced Mining Executive Mr. Mwelwa Manda as Country Manager and seasoned Investment Guru Mr. Valentine Chitalu who will advise Prospect in relation to its broader operations and investments in Zambia in a Non-Executive capacity.

In photos: Sam Hosac & Valentine Chitalu 

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