Prospect Resources has raised A$45 million through a strategic equity placement to accelerate drilling and studies at its Mumbezhi Copper Project in Zambia, aiming to expand its mineral resources and advance project development.
- A$45 million equity placement at A$0.38 per share
- Funding to support 50,000m of drilling and metallurgical studies
- Phase 3 drilling to start in Q2 2026 targeting resource growth
- Major shareholder Eagle Eye maintains 15.1% stake via conditional tranche
- Plans include scoping and pre-feasibility studies through 2027
Strategic Capital Raise to Accelerate Exploration
Prospect Resources Limited (ASX, PSC) has successfully secured binding commitments to raise A$45 million through an equity placement priced at A$0.38 per new share. This capital injection is earmarked to fast-track exploration and development activities at the company’s flagship Mumbezhi Copper Project, located in Zambia’s prolific Central African Copperbelt.
The placement attracted strong interest from both domestic and international institutional investors, including existing shareholders. Notably, Eagle Eye Asset Holdings Pte Ltd, a long-term major shareholder holding 15.1% of Prospect, has committed to maintain its stake through a conditional tranche subject to shareholder approval.
Focused Drilling and Resource Expansion Plans
With the new funds, Prospect plans to undertake an ambitious 50,000 metres of resource and regional exploration drilling over 2026 and 2027. The upcoming Phase 3 drilling program, set to commence in the second quarter of 2026, will primarily target the Nyungu Central deposit, aiming to grow and upgrade the recently updated mineral resource estimate of 772,000 contained copper tonnes at 0.50% copper equivalent.
In addition to resource expansion, the drilling campaign will explore promising regional targets such as Chipimpa, Sharamba, Nyungu South, and Kamafamba. These efforts are supported by detailed geophysical surveys, soil geochemistry, and geological mapping to refine drill targeting.
Advancing Technical Studies and Project Development
Beyond drilling, the proceeds will fund metallurgical studies focused on evaluating gold and cobalt recoveries, which are important by-products at Mumbezhi. Prospect also intends to complete an internal scoping study by the second half of 2026, laying the groundwork for a pre-feasibility study targeted for late 2027. These studies are critical steps toward advancing the project toward potential development.
Prospect’s CEO, Sam Hosack, highlighted the strong investor support as validation of the project’s long-term growth potential and expressed confidence in unlocking significant resource upside. The company’s ongoing collaboration with First Quantum Minerals is expected to enhance technical insights and add value to the exploration program.
Market Position and Next Steps
The placement was conducted at an 8.4% discount to the last traded price, reflecting a balanced approach to raising capital while maintaining shareholder value. The unconditional tranche of approximately A$38.2 million is set to settle imminently, with the conditional tranche awaiting shareholder approval at an extraordinary general meeting expected in April 2026.
With a strengthened balance sheet and a clear exploration roadmap, Prospect Resources is well positioned to accelerate the development of Mumbezhi, a project situated in a world-class copper region with significant strategic importance amid the global energy transition.
Bottom Line?
Prospect’s A$45 million raise sets the stage for a pivotal year of exploration and development at Mumbezhi, with market eyes on upcoming drilling results and shareholder approvals.
Questions in the middle?
- Will the conditional tranche receive shareholder approval as planned in April 2026?
- How will metallurgical test results impact the economic viability of gold and cobalt by-products?
- What are the prospects for expanding the resource beyond Nyungu Central into regional targets?