Prospect Resources acquires Mumbezhi Copper Project in Zambia

Prospect Resources Limited (ASX: $PSC) has executed two separate Sale and Purchase Agreements to acquire the highly prospective Mumbezhi Copper Project (Mumbezhi or the Project) in the Zambian Copperbelt. The acquisition includes an 85% interest in Mumbezhi from the current owner, Global Development Cooperation Consulting Zambia Limited (GDC), for approximately US$5.5 million in cash and US$1 million Prospect scrip. The Project is located in the world-class Central African Copperbelt region of north-western Zambia and covers an area of approximately 356 square kilometres.

Executive Commentary on Mumbezhi Copper Project Acquisition

Prospect's Managing Director and CEO, Sam Hosack, expressed, 'The purchase agreements we have struck for the highly prospective Mumbezhi Copper Project represent a significant milestone, which extend our reach into the battery and electrification mineral sector in Africa. The Nyungu deposits have all the potential ingredients of a world-class, long-life, open-pittable, copper-cobalt mining and processing operation, with regionally favourable metallurgy and significant exploration upside.' Hosack also highlighted the promising appointment of Mwelwa Manda, a highly experienced Mining Executive as Country Manager, and Valentine Chitalu, appointed as Zambian Strategic Advisor, to provide substantial on-ground leadership for the project.

Summary of Mumbezhi Copper Project Acquisition

Prospect Resources has successfully acquired an 85% interest in the highly prospective Mumbezhi Copper Project in Zambia, positioning the company in a prolific and historic copper mining region. The Project, surrounded by several world-class copper mines, offers significant potential for a low-cost open pit mine development. Prospect is well-capitalized to rapidly advance this flagship Project with $21 million cash in hand. The acquisition is set to deliver a high-quality, advanced copper exploration play into the company's portfolio, providing diversification and the potential to rapidly develop into the flagship project. The company also aims to evaluate and conduct further exploration work to update the exploration results previously reported by the previous owner, Orpheus Uranium Limited, after the acquisition completes.