Prospect Resources (ASX:PSC) announced an expansion of its footprint in the Zambian mining sector, executing an agreement to increase its ownership in the Mumbezhi Copper Project to 90%.
Through its Singapore-based subsidiary, Prospect Copper, the company will acquire an additional 5% interest from Global Development Cooperation Consulting Zambia for a cash consideration of US$4.3 million.
The completion of the transaction is currently anticipated for April, contingent upon several regulatory and corporate milestones.
These include obtaining a property transfer tax clearance certificate from the Zambian Revenue Authority, securing necessary clearances or consents from the Minerals Regulation Commission, and receiving formal approval from the GDC board and shareholders.
The parties must enter into a new shareholders agreement that maintains the commercial terms of the existing arrangement.
The acquisition follows a successful $45 million equity placement in February, providing the company with a capital position to fund its operational ambitions.
While the legal transfer progresses, Prospect is simultaneously advancing its technical program.
Field exploration activities have already recommenced on-site, with Phase 3 drilling scheduled to begin in early Q2 2026.
Managing Director Sam Hosack expressed confidence in the project's "world-class" potential, noting that the increased stake reflects the company's commitment to accelerating development at Mumbezhi during a critical phase of exploration.
At the time of reporting, Prospect Resources' share price was $0.39.