Prospect Resources Limited (ASX: PSC) has executed an investment agreement with First Quantum Minerals Ltd (TSX: FM) to make a placement to raise new equity proceeds of approximately A$15.2M.
The issue price of A$0.15 per share represents a 36% premium to Prospect’s last closing price of A$0.11, and a 28% premium to 20-day VWAP of A$0.117.
First Quantum will become a 15% cornerstone shareholder in Prospect and will assist with future exploration of Prospect’s Mumbezhi Copper Project as a key technical partner, whilst supporting Prospect’s exploration team.
The Sentinel Copper Mine, 100% owned by First Quantum, is located approximately 25km northwest of Mumbezhi, within the world-class Northwestern Zambian Copper Belt.
Prospect’s managing director and CEO, Sam Hosack, commented, “We are delighted to welcome First Quantum to the Prospect share register testament to their conviction on the scale potential at Mumbezhi. The FQM Strategic Investment offers us considerable funding runway, coupled with serious regional exploration expertise, to continue advancing our planned exploration of Mumbezhi. We are also grateful for the continued support of our existing shareholder, Eagle Eye, as a reflection of its confidence in Prospect’s strategy and vision in Zambia as we welcome First Quantum.”
Additionally, Prospect has entered into a placement agreement with long-term substantial shareholder, Eagle Eye, subject to receiving shareholder approval, to raise ~A$2.8M in new equity proceeds, at an issue price of A$0.15, which will allow Eagle Eye to maintain its existing 15.3% shareholding in Prospect.
Together, the placements to First Quantum and Eagle Eye will facilitate Prospect raising up to a total of ~A$18.5M.
“This investment strongly validates our conviction for scale at Mumbezhi, as well as 2024 works which recently culminated in the delivery of a significant maiden 515kt contained copper Mineral Resource5 across just the Nyungu Central and Kabikupa deposits. It also demonstrates a robust belief in the long-term growth potential on offer across the broader Mumbezhi tenure, which covers two granted mining licenses.” Added Mr. Hosak.
To find out more, please visit www.prospectresources.com.au
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