Prospect Resources Limited (ASX:PSC) agreed to acquire 85% stake in Mumbezhi Copper Project from Global Development Cooperation Consulting Zambia Limited for $6.50 million on April 9, 2024. The consideration consists of $5.50 million in cash and $1 million in Prospect scrip. As part of the consideration, $6.50 million was paid towards assets.

The acquisition is subject to several conditions precedent i.e., Prospect has completed the due diligence on the Mumbezhi Project, the Licence, GDC and Project Co and Prospect is reasonably satisfied with the due diligence results, the Licence and all statutory and regulatory permits and approvals relating to Mumbezhi are in good standing, Prospect and GDC agree the form of a shareholders agreement that will govern the affairs of Project Co, Ministerial Consent for the transfer of the Licence to Project Co; approval under the Competition and Consumer Protection Act in relation to the transfer of the Licence; property transfer tax clearance certificate for the transaction; GDC?s shareholders, as required under Section 87 of the Companies Act (Zambia); and o Prospect?s shareholder approval ? if shareholder approval is required for the issue of the scrip component of the transaction consideration, Prospect will seek shareholder approval. In connection with the Mumbezhi acquisition, Prospect has entered into a consultancy agreement with Valentine Chitalu.

Chitalu will assist Prospect with the completion of the Mumbezhi acquisition and to advise Prospect in relation to its broader operations and investments in Zambia.