First Quantum buys into Aussie explorer to boost Zambia copper

Canada’s First Quantum Minerals (TSX: FM) is acquiring a 15% stake in Prospect Resources (ASX: PSC), a battery and electrification metals developer based in Australia, as it deepens its presence in Zambia’s copper belt.The deal sees First Quantum invest A$15.2 million ($9.7m) in a share placement at A$0.15 per share — a 36% premium to Prospect’s last closing price. The investment also gives First Quantum a seat on Prospect’s board and a role as technical partner.Shares in Prospect soared on the news, closing 32% higher in Sydney at A$0.14 each, capitalizing the junior at A$83 million ($53m).Prospect’s Mumbezhi copper project sits just 25km east of First Quantum’s Trident project, which includes the Sentinel and Enterprise mines. The funds will help accelerate exploration at Mumbezhi, aligning with Zambia’s push to triple annual copper output to 3 million tonnes by 2031.Prospect recently secured two mining licences covering its entire 356 km² landholding at Mumbezhi for an initial 25-year term. It has announced a maiden mineral resource estimate of 514,600 tonnes of contained copper for the project.In a parallel move, Prospect has entered a placement agreement with long-time shareholder Eagle Eye, subject to shareholder approval. The A$2.8 million raise, also at A$0.15 per share, allows Eagle Eye to maintain its 15.3% stake.“This investment in Prospect supports our exploration strategy in Zambia and signals our continued commitment to the country,” First Quantum’s Zambia Director, Anthony Mukutuma, said. “With the upcoming launch of the Kansanshi S3 expansion, we’re reinforcing our long-term presence.”Prospect chief executive Sam Hosack said the deal offers “considerable funding runway and serious regional exploration expertise” to advance the Mumbezhi program.First Quantum has operated in Zambia for nearly three decades. It runs the Kansanshi mine and smelter in Solwezi, and the Sentinel and Enterprise mines in Kalumbila.The $1.3 billion Kansanshi S3 expansion, set to open later this year, will boost ore processing by 25 million tonnes annually— up from 30 million — and extend mine life by over two decades.First Quantum, with assets in Zambia, Spain, Mauritania, Australia, Finland, Turkey, Panama, Argentina and Peru, produced last year 431,004 tonnes of copper, 139,040 ounces of gold and 23,718 tonnes of nickel.Weiter zum vollständigen Artikel bei Mining.com Weiter zum vollständigen Artikel bei Mining.com