Prospect Resources, FQM ink investment deal for Mumbezhi Copper Project
Prospect Resources has entered into a strategic investment agreement with First Quantum Minerals (FQM), a leading copper producer, to raise approximately A$15.2 million (around $9.5 million) through the issuance of 101.06 million new shares priced at A$0.15 each.
This investment will result in FQM acquiring a 15% equity stake in Prospect and securing the right to appoint a representative to its board of directors. The partnership also establishes FQM as a key technical collaborator in the development of the Mumbezhi Copper Project in Zambia. Given FQM’s extensive experience in copper mining and processing, particularly through its operations at the Sentinel and Kansanshi mines located in a similar geological setting to Mumbezhi its involvement is expected to significantly enhance Prospect’s exploration and development efforts.
Phase 2 drilling campaign
Prospect is preparing to launch the second phase of its drilling campaign at Mumbezhi in the second quarter of 2025, aimed at expanding existing mineral resource estimates and identifying new regional targets. The company’s managing director and CEO, Sam Hosack, expressed confidence in the strategic value of FQM’s involvement, highlighting the benefits of their regional knowledge and technical expertise in accelerating exploration outcomes and boosting resource potential. In addition to the FQM deal, Prospect has secured a further A$2.8 million in equity funding from Eagle Eye Asset Holdings through the issuance of 18.86 million new shares. Eagle Eye will maintain its 15.3% ownership in the company following the transaction.
Combined, the funds raised from both FQM and Eagle Eye pending shareholder approval will strengthen Prospect’s working capital position and support ongoing project activities at Mumbezhi. Azure Capital acted as the financial adviser for these transactions, while legal counsel was provided by King & Wood Mallesons. Hosack reiterated the company’s commitment to working closely with FQM and continuing to benefit from Eagle Eye’s support in the pursuit of developing a world-class copper asset. He emphasized that this collaboration aligns with Zambia’s 2031 strategic objective to increase annual copper production to three million tonnes.
