Tertiary Minerals’ Zambian Subsidiary Signs Strategic Agreement with FQM on Mukai Copper Project
Tertiary Minerals’ newly established Zambian subsidiary, Copernicus Minerals, has signed a binding letter of agreement (BLA) with First Quantum Minerals (FQM) for the Mukai copper project in Zambia.
Copernicus Minerals is 90% owned by Tertiary Minerals (Zambia), which is 96% owned by Tertiary Minerals.
Under the agreement, FQM is granted an initial 24-month exploration due diligence period, during which it is committed to funding a minimum of $1.5 million in exploration expenses, with $500,000 allocated for the first year (Phase 1).
FQM can earn an initial 51% stake in the Mukai exploration license by demonstrating a mineral resource containing at least 80,000 tonnes of copper within an additional 24 months (Phase 2).
FQM can further increase its interest to 80% by completing a mining study and issuing a notice of intent to mine within a third 24-month period (Phase 3).
FQM will continue to solely fund the project until all necessary regulatory and governmental permits are obtained for the commencement of construction.
At that point, Copernicus may either maintain a 20% contributing equity interest or dilute to a minimum of 10%, at which point its interest would automatically convert to a 1.5% net smelter return (NSR) royalty.
If FQM advances through all phases of the project, it will make progressive payments to Copernicus totaling up to $2 million over the three phases and subsequent agreements.
The BLA is contingent on the renewal and transfer of the licenses from Mwashia Resources to Copernicus, a process that is currently underway.
The Mukai license is adjacent to FQM’s Trident project, which includes the operating Sentinel copper mine and the recently developed Enterprise nickel mine. The Sentinel processing plant has a capacity of 55 million tonnes of copper ore annually.
The joint venture aims to identify copper (and/or nickel) deposits that can be quickly developed as additional feedstock for the Trident plants.
FQM Executive Chairperson Patrick Cheetham expressed confidence in the collaboration, emphasizing the strategic importance of the Mukai project and its proximity to the existing Trident infrastructure.
He noted that FQM is highly motivated to find additional ore feed for Sentinel and highlighted the significant potential benefits for both parties and for Zambia.
SP Angel, a corporate finance, broking, and advisory firm, praised the agreement, noting that Mukai remains highly prospective with promising but limited soil sampling results so far. The firm emphasized the value of FQM’s financial resources and technical expertise in advancing greenfield exploration.
