Midnight Sun Secures License Renewal for Solwezi Copper Project in Zambia
Midnight Sun Mining Corp. (TSXV: MMA) announced Monday the renewal of the exploration license for Kazhiba, a key target area within its flagship 506-sq.-km Solwezi copper project in Zambia.
The project is located just 10 km from the Kansanshi mine, Africa’s largest copper mining complex, operated by First Quantum Minerals (TSX: FM). Midnight Sun has an exploration agreement with First Quantum to develop the area.
The Zambian government recently rectified an earlier error in rejecting the license renewal for Kazhiba. This resolution removes any doubts about the project’s future.
“The Kazhiba license issue has been resolved, removing any concern as to the status of this critical component of our exploration and development plans,” said Midnight Sun CEO Al Fabbro. He expressed gratitude to Zambia’s Ministry of Mines and Minerals Development for resolving the issue.
Midnight Sun is currently advancing its exploration program at Kazhiba in collaboration with First Quantum. The program aims to define near-surface oxide copper mineralization that could serve as a feed source for the Kansanshi mine.
“Near-term production and potential cash flow provide incredibly rare optionality to our Solwezi project, offering a non-dilutive path to further explore underlying sulphide copper targets at Kazhiba, Mitu, and Crunch,” Fabbro said.
The Solwezi project benefits from its proximity to major mining operations, including Barrick Gold’s Lumwana copper mine, positioning it strategically on the Zambian Copperbelt that extends into the Democratic Republic of Congo.
Midnight Sun has also amended its earn-in agreement with KoBold Metals, a U.S.-based exploration company backed by high-profile investors such as Bill Gates and Jeff Bezos.
The amendment removes the agreement’s longstop date to allow additional time for Zambian regulatory approvals.
KoBold aims to earn a 75% interest in the Dumbwa portion of Solwezi by investing $15 million in exploration and making cash payments totaling $500,000 over four and a half years.
Despite the positive developments, Midnight Sun’s shares fell 3.3% on Monday morning in Toronto, with the company’s market capitalization standing at C$95.1 million.
