Prospect Resources acquires Mumbezhi Copper Project in Zambia

Prospect Resources has acquired the Mumbezhi Copper Project in Zambia. Firm’s MD and CEO, Sam Hosack, made the announcement and said the acquisition, highlights the potential of the Nyungu deposits to become a world-class copper-cobalt mining operation.

Situated in the renowned Central African Copperbelt region of north-western Zambia, this project covers a substantial area and is strategically located near major mines with similar geological characteristics. It is a prospective for large tonnage, low-to-medium grade copper-cobalt mineralisation.

The company has secured the acquisition with current owner Global Development Co-operation Consulting Zambia (GDC) for a cash consideration of approximately $8.32 million and $1.5m in Prospect shares. Prospect will also make a $1.5m payment of scrip plus options to Orpheus Uranium (ASX: ORP) – formerly Argonaut Resources – as reimbursement for certain exploration costs at Mumbezhi.

Mining jurisdiction

CEO, Sam emphasized Zambia’s favorable jurisdiction for mining, citing the country’s extensive experience in the resources sector, particularly in copper mining. The appointment of Mwelwa Manda as country manager adds substantial on-ground leadership to the project, complemented by Valentine Chitalu’s role as Zambian strategic advisor. With existing drilling in place, there’s potential for rapidly defining a maiden copper mineral resource, along with opportunities for significant new discoveries.

Hosack noted the opportune timing of the move into copper, given the subdued lithium markets. This strategic shift allows Prospect Resources to diversify its portfolio while maintaining a focus on long-term growth. The company remains committed to its lithium strategy but sees the addition of copper as providing valuable diversification, with the Mumbezhi project holding the potential to become a flagship asset.