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Highlights
- Prospect secures $15.2M backing from First Quantum
- Strategic partnership strengthens technical capabilities
- Drilling campaign to target new zones at Mumbezhi
Prospect Resources (ASX:PSC) has announced a $15.2 million investment from global copper major First Quantum Minerals (TSX:FM), marking a significant milestone in the development of its Mumbezhi copper project in north-western Zambia. This strategic collaboration gives First Quantum a 15% equity stake in Prospect and sets the stage for an accelerated exploration program at the copper-rich site.
The investment will be executed through the issuance of 101.06 million new shares in Prospect at $0.15 each—a 36% premium to the last closing price of $0.11 and a 28% premium to the 20-day volume-weighted average. Upon completion, First Quantum will also gain the right to appoint a representative to the Prospect board, with this right remaining valid as long as it retains at least a 10% shareholding.
The Mumbezhi project sits just 25 kilometres from First Quantum’s Sentinel copper mine and currently holds a JORC-compliant resource estimate of 107.2 million tonnes grading 0.5% copper, equating to 514.6 kilotonnes of contained metal. The close proximity to Sentinel and the strategic alignment with an experienced regional operator position the Mumbezhi project for a significant uplift in resource development and exploration effectiveness.
In parallel, long-term shareholder Eagle Eye is also reinforcing its support with a separate placement of 18.86 million shares at $0.15 per share, raising an additional $2.8 million. This move ensures Eagle Eye maintains its 15.3% holding in the company. Combined, the investments from First Quantum and Eagle Eye bring a total capital injection of $18.5 million, providing Prospect with a strong financial base to continue advancing its exploration programs.
Prospect is preparing to launch its Phase 2 drilling campaign, targeting the Nyungu North, Nyungu South, and West Mwombezhi zones. These areas have shown promising signs of copper mineralization and will be the focus of the next stage of development.
First Quantum, a seasoned copper producer in Zambia, brings considerable operational expertise from its existing Sentinel and Kansanshi operations, which together produced over 402,000 tonnes of copper-in-concentrate in 2024. With expansion plans underway at Kansanshi, First Quantum is evolving its processing capabilities to handle deeper, lower-grade sulphide ores—insights that could directly benefit Mumbezhi’s exploration and development.
