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Johannesburg: The race for Africa’s rich copper belt has intensified with global mining heavyweight First Quantum Minerals (FQM) making a significant strategic move, injecting US$15.2 million into Australian-based explorer Prospect Resources. In return for this cornerstone investment, FQM will secure a substantial 15% shareholding in Prospect, a move that promises to accelerate the development of Prospect’s promising Mumbezhi copper project in north-west Zambia.
The deal, announced overnight, sees Prospect issuing 101.06 million new shares to FQM at a price of $0.15 apiece – a significant 36% premium over Prospect’s last closing price and a healthy 28% premium on its 20-day average. This vote of confidence from an established industry titan underscores the potential FQM sees in the Mumbezhi deposit.
Mumbezhi, strategically located a mere 25 kilometres from FQM’s wholly owned and significant Sentinel copper mine within Zambia’s world-class copper belt, boasts an estimated resource of 107.2 million tonnes grading 0.5% copper, containing a hefty 514.6 kilotonnes of the sought-after metal.
Prospect Managing Director Sam Hosack hailed the arrival of FQM onto the share register as a game-changer for the company’s ambitions. “Bringing First Quantum into the fold as a strategic cornerstone shareholder and technical partner offers us considerable funding runway to continue advancing our planned exploration of Mumbezhi,” he stated.
The partnership extends beyond mere financial backing. FQM’s extensive regional expertise will be invaluable to Prospect’s exploration efforts. “Having access to First Quantum’s breadth of regional expertise will position us to continue identifying new regional prospects and adding potential new copper tonnages to the existing Mumbezhi resource estimate at a far greater rate than on our own,” Hosack added.
First Quantum is no stranger to Zambia’s copper riches. The Canadian producer has a long and established history in the region, operating the substantial Sentinel and Kansanshi mining and processing operations. In 2024 alone, these operations churned out a formidable 402,000 tonnes of copper-in-concentrate. The company is further bolstering its presence with an ongoing expansion of its smelting capacity at Kansanshi. This strategic shift will see Kansanshi evolve from a high-grade, medium-scale operation to a medium-grade, larger-scale one, better equipped to handle the increasing proportion of primary, lower-grade sulphide ores found at depth.
Upon completion of the share issue, First Quantum will also gain the right to nominate a representative to Prospect’s board of directors, a position they will maintain as long as their equity stake remains above the 10% threshold. This board representation will provide FQM with direct insight and influence over the development of the Mumbezhi project.
This strategic alliance marks a significant step forward for Prospect Resources, providing them with the financial muscle and technical prowess of a major industry player to accelerate their Zambian copper ambitions. For First Quantum, the investment represents a shrewd move to secure a stake in a promising nearby resource, further solidifying their dominant position within one of the world’s most prospective copper regions. The deal underscores the ongoing appetite for copper assets as the global energy transition fuels ever-increasing demand for the red metal.
