Prospect Resources has signed a strategic investment agreement with copper miner First Quantum Minerals (FQM) to raise approximately A$15.2m ($9.5m) in equity with the placement of 101.06 million new shares at A$0.15 each.
FQM will become a 15% shareholder in the company and serve as a key technical partner in the future exploration and advancement of the Mumbezhi Copper Project in Zambia.
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With this investment, First Quantum secures the right to nominate a board member.
First Quantum’s expertise in copper mining and processing in Zambia, evidenced by its operations at the Sentinel and Kansanshi copper mines, will be valuable to Prospect as Mumbezhi is situated in a similar geological environment to Sentinel, according to Prospect.
Prospect is set to commence its phase two drilling programme at Mumbezhi in the second quarter of 2025 (Q2 2025) to expand the mineral resource estimates and explore new regional targets.
Prospect managing director and CEO Sam Hosack said: “Bringing First Quantum into the fold as both a strategic cornerstone shareholder and technical partner offers exceptional value-accretive opportunities for both parties.
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By GlobalData“Gaining access to First Quantum’s breadth of regional expertise to complement our current multi-disciplinary exploration strategy, Prospect is well placed to continue identifying further regional prospects, make targeted new discoveries and add potential new copper tonnage to the existing Mumbezhi Mineral Resource estimate at a far greater rate.”
In addition to the FQM strategic investment, Prospect will raise approximately A$2.8m in new equity proceeds funding from Eagle Eye Asset Holdings with a placement of 18.86 million new shares.
Eagle Eye will maintain its 15.3% shareholding in Prospect through its subscription agreement.
The combined funds raised from both investments, subject to shareholder approval, will bolster Prospect’s working capital and support ongoing activities at Mumbezhi.
Azure Capital acted as the financial adviser for Prospect on these strategic investments, with King & Wood Mallesons providing legal counsel.
Hosack added: “We look forward to working closely with First Quantum with the ongoing support of Eagle Eye in targeting the next world-class copper asset in Zambia and in doing so making a material contribution to the Zambian strategy 2031 to produce three million tonnes of copper.”
In March 2025, First Quantum’s Cobre Panama mine initiated steps to suspend arbitration proceedings against Panama.
