Prospect Resources Completes Deal with Orpheus Uranium
Prospect Resources Limited (PSC: ASX, 5E8:FRA) has finalized a significant deal with Orpheus Uranium Limited (ASX: ORP), marking a milestone in the advancement of their Mumbezhi Copper Project in Zambia.
The agreement, announced publicly on April 9, 2024, provides Prospect with access to crucial data to propel their project forward.
As part of the agreement, Prospect paid Orpheus A$1.0 million in fully paid PSC shares, serving as partial reimbursement for prior exploration expenses.
Additionally, three options to acquire ordinary PSC shares were granted for every four shares issued, priced at 15 cents per share and expiring three years after issuance.
A further milestone payment of A$2.5 million will be made to Orpheus upon the delineation of a JORC-reportable Mineral resource exceeding 500,000 tonnes of contained copper metal.
On May 3, 2024, the company issued 8.3 million ordinary shares at an issue price of $0.12 per share, along with 6,250,000 unlisted options to acquire ordinary shares at $0.15 per share, expiring on April 11, 2027.
Sam Hosack, Managing Director and CEO of Prospect Resources, expressed enthusiasm about the completion of the deal with Orpheus Uranium, emphasizing its significance in obtaining crucial mining and geological data.
He noted, “The satisfaction of the Conditions Precedent with Orpheus Uranium results in the Prospect team owning all existing mining and geological data from Orpheus/Argonaut, a significant first step in Prospect’s understanding of the opportunity presented by the Mumbezhi Copper Project in Zambia.”
Hosack further added, “We are now processing, cataloguing, analyzing, and benefiting from a far larger volume of digital data and physical drill core materials sourced over a decade of exploration by Orpheus/Argonaut, and we thank the Company for the seamless way in which the data transfer occurred.”
With the acquisition of comprehensive data, Prospect is poised to deliver a maiden copper mineral resource estimate for Mumbezhi during Q3 2024.
Hosack concluded by affirming the corporate team’s dedication to finalizing the transaction with GDC to secure an 85% interest in the Project license by the end of May.
