Prospect Resources (ASX:PSC) announced a strategic investment agreement with global mining giant First Quantum Minerals, raising approximately $15.2 million through the placement of 101.06 million new shares at $0.15 per share.
The placement price represents a 36% premium to Prospect's last closing price and a 28% premium to its 20-day volume-weighted average price.
As a result, First Quantum will become a 15% cornerstone shareholder in Prospect and a key technical partner in advancing the company's 85%-owned Mumbezhi Copper Project in northwest Zambia, located just 25km from First Quantum's Sentinel Mine.
Prospect has secured a further $2.8 million investment from long-term substantial shareholder Eagle Eye Asset Holdings, at the same share price, subject to shareholder approval.
This will allow Eagle Eye to maintain its 15.3% stake. Combined, the two placements are set to raise approximately $18.5 million.
The partnership with First Quantum will see the formation of a technical working group to support exploration and development at Mumbezhi, with at least US$2.5 million ($4 million) allocated to new exploration beyond Nyungu Central.
First Quantum will also gain board representation and rights including participation in future equity raises, escrow restrictions, and voting support provisions over the next 18 months.
Prospect's Phase 2 drilling program, scheduled to begin in the second quarter, aims to expand the recently declared 515kt contained copper mineral resource and test new regional targets, including Nyungu North, Nyungu South, and West Mwombezhi.