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News.com.au
27-04-2025
- Business
- News.com.au
Kristie Batten: Prospect gets big backing for copper hunt
One of Australia's top mining journalists, Kristie Batten writes for Stockhead every week in her regular column placing a watchful eye on the movers and shakers of the small cap resources scene. Thanks to backing from a global copper major, Prospect Resources (ASX:PSC) now has $20 million to continue to unlock the potential of its Mumbezhi copper project in Zambia. Earlier this month, Prospect announced that it had entered into an investment agreement with First Quantum Minerals for a $15.2 million placement at 15c per share, which was a 36% premium to the company's share price at the time. The investment, which closed last week, gave FQM a 15% stake in Prospect and the right to appoint a director to its board. Prospect's largest shareholder, Singapore-based family office Eagle Eye Asset Holdings, subscribed for an additional $2.8 million worth of shares at the same price in order to maintain its 15.3% stake. The $18.5 million in proceeds is in addition to the $6.5 million Prospect had in the bank at the end of March. Mumbezhi emerging Following a phase one drilling program in the second half of 2024, Prospect reported the initial resource for its Mumbezhi project in northern Zambia last month. The project's Nyungu Central and Kabikupa deposits have an indicated and inferred resource of 107.2 million tonnes at 0.5% copper for 515,000 tonnes of contained copper, based on a 0.2% copper cut-off grade. The resource includes a higher-grade component of 69Mt at 0.53% copper at Nyungu Central and 18Mt at 0.57% copper at Kabikupa, using a 0.3% cut-off. Prospect also reported an updated exploration target of 420Mt to 1.05 billion tonnes at 0.4-0.6% copper. Canaccord Genuity analyst Tim Hoff noted that if the midpoint of the exploration target was delivered, it would be the largest copper deposit amongst ASX-listed developers. As part of the FQM investment, the Canadian miner will support Prospect's exploration efforts with the pair to form a technical working group. The phase two drilling program at Mumbezhi is due to begin later this quarter. The program will target further extension to the resources at Nyungu Central and Kabikupa and test the Nyungu North and West Mwombezhi targets. Prospect has agreed to spend at least US$2.5 million of the funds raised from FQM on exploration outside Nyungu Central. 'We believe Prospect is well-placed to replicate the success it has had at Nyungu Central,' Hoff said. Processing solution clear Mumbezhi sits just 25km to the southwest of FQM's Sentinel copper operation and sits in the same geological setting. On Thursday, FQM reported March quarter production of 46,000t of copper at cash costs US$2.55 per pound at Sentinel. Despite a soft quarter due to rainfall, FQM maintained 2025 guidance of 200,000-230,000t for Sentinel. In March, Hoff highlighted the potential of Mumbezhi to provide potential feed to the 62Mt per annum Sentinel operation. 'On its current life-of-mine plan, the operation's grades are expected to fall from 0.5% copper to 0.3% copper in 2029 and will run out of ore in 2034,' he said. 'We believe that a large-scale resource, next door to this level of infrastructure, will become a 'must-have' in order to maintain production levels. 'Based on two production scenarios (10Mtpa and 20Mtpa) that we ran, we believe feeding supplementary ore from Mumbezhi could add an incremental US$439-607 million in value to the Sentinel operations.' FQM also owns the Kansanshi operation in Zambia and more than 400,000t per annum of smelting capacity. FQM has previously shown it is a fan of partnerships, as evidenced by the introduction of POSCO at its now-mothballed Ravensthorpe nickel operation in Western Australia and a partnership with Rio Tinto at the La Granja copper project in Peru. On a conference call on Thursday, management confirmed it was investigating the introduction of a partner to its Zambian business. While the introduction of a partner is designed to strengthen FQM's balance sheet and reduce its hefty net debt of US$5.8 billion at March 31, it would also likely accelerate investment in the Zambian operations. 'The fact that Zambia has made really positive strides in recent years to reform its mining sector has attracted interest from different parts of the world, and we are seeing if that might eventuate into a sensible partnership,' FQM chief financial officer Ryan MacWilliam said. Hoff has a speculative buy rating for Prospect and a 40c price target, 166% higher than its 15c closing price on Thursday.
Yahoo
16-04-2025
- Business
- Yahoo
Prospect secures $9.5m from First Quantum for Mumbezhi Copper Project in Zambia
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. 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. '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. "Prospect secures $9.5m from First Quantum for Mumbezhi Copper Project in Zambia" was originally created and published by Mining Technology, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
Yahoo
11-02-2025
- Business
- Yahoo
Solis Minerals Announces Mitch Thomas Appointed as Chief Executive Officer and Mike Parker to Transition to Technical Director
Perth, Western Australia--(Newsfile Corp. - February 11, 2025) - Solis Minerals Limited (ASX: SLM) (TSXV: SLMN) ("Solis Minerals") is pleased to announce the appointment of Mitch Thomas as Chief Executive Officer. As the former Chief Financial Officer of Latin Resources Limited (ASX: LRS) ("Latin Resources") and CFO Battery Materials for Rio Tinto (ASX: RIO), Mitch has deep corporate, commercial and project development experience. Additionally, he has worked extensively in South America, including three years in Peru working for Rio Tinto supporting the La Granja copper project. He worked in Rio Tinto's London M&A team focussed on copper. More recently, he played an instrumental role in the divestment of Latin Resources' Salinas Lithium Project in Brazil to Pilbara Minerals Limited (ASX: PLS) for A$0.6 billion1. Mitch is a qualified accountant and has an MBA from the University of Melbourne. Mike Parker, who has been an Executive Director since August 2024, will transition his directorship to a predominant technical focus. Mike is a geologist by training and has been a member of the AusIMM for 16 years. He held senior country manager positions with First Quantum Minerals (TSX: FM) and was responsible for two major copper discoveries: the Lonshi and Frontier Copper Mines. From 2011 to 2017, Mike was country manager for FQM in Peru, responsible for the design and implementation of FQM's corporate strategy in Latin America. Mike has a BSc Mining Geology (Honours), University of Leicester, UK. Formal commencement is expected in March 2025. Non-Executive Chairman Chris Gale commented: "We are delighted to welcome Mitch Thomas to Solis Minerals. Mitch has a proven track record of supporting early-stage and large-scale mining projects in South America to deliver shareholder value. We are very excited about the extensive drilling campaign in 2025 that will take place across our copper-rich tenement package in southern Peru. We are confident that Mitch, Mike Parker and the whole Solis team, will position Solis Minerals for success in 2025 and beyond. We also thank Mike Parker for his leadership over the past six months and for accepting the position of Technical Director in Peru. The extensive work in identifying drill-ready targets and adding more tenements to our now 66kha tenement package in southern Peru has placed Solis Minerals in a commanding position in what is one of the most attractive copper provinces globally." 1 Refer to LRS:ASX announcement dated 14 August 2024. Value quoted at time of announcement. Appendix 1 Summary of Key Terms and Conditions: Position: Chief Executive Officer of Solis Minerals. Commencement: expected March 2025. Term: ongoing basis with termination notice provisions and probation period. Remuneration: A$300,000 plus statutory superannuation contributions. A performance rights package has been agreed on the following vesting conditions and subject to shareholder approval. All performance rights have an expiry date of three years from the date of issue. The performance rights package is subject to TSX Venture Exchange review and approval. Tranche Performance rights Vesting conditions Tranche 1 500,000 12-months continuous service. Tranche 2 500,000 Drilling programme completed in Peru of at least 5,000 metres within 12 months. Tranche 3 1,000,000 Maiden JORC resource released to the market of 125,000t at a copper equivalent grade of at least 0.4% within 24 months. Tranche 4 1,000,000 24-months continuous service and total shareholder return > 20% per annum. Tranche 5 3,000,000 Obtain a market capitalisation of A$100m within 24 months. ENDS This announcement is authorised by Mitch Thomas, CEO of Solis Minerals Ltd. Contact Mitch Thomas CEOSolis Minerals Limited+61 8 6117 4795 Media & Broker Enquiries: Fiona Marshall & Jason Mack White Noise Communications fiona@ jason@ 400 512 109 Neither the TSX Venture Exchange nor its Regulation Service Provider (as the term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy of accuracy of this news release. About Solis Minerals Limited Solis Minerals is an emerging exploration company, focused on unlocking the potential of its South American copper portfolio. The Company is building a significant copper portfolio around its core tenements of Ilo Este and Ilo Norte and elsewhere in the Coastal Belt of Peru and currently holds 81 exploration concessions for a total of 69,200Ha (46 concessions granted with 35 applications in process). The Company is led by a highly-credentialled and proven team with excellent experience across the mining lifecycle in South America. Solis is actively considering a range of copper opportunities. South America is a key player in the global export market for copper and Solis, under its leadership team, is strategically positioned to capitalise on growth the opportunities within this mineral-rich region. To view the source version of this press release, please visit
