• Prospect Resources plans to raise its stake in the Mumbezhi copper project to 90%.

• The company will pay $4.25 million to buy an additional 5% from its partner GDC.

• The move comes as copper demand rises globally, driven by energy transition and AI.

Australian junior mining company Prospect Resources announced on Thursday, March 5, that it has reached an agreement to increase its stake in Zambia’s Mumbezhi copper project to 90%, up from the current 85%. The move would further strengthen the company’s position in Zambia, Africa’s second-largest copper producer.

Under a deal reached in 2024, Prospect Resources already holds a majority stake in the Mumbezhi project, while the former owner, Global Development Cooperation (GDC), retained a 15% interest. With the newly announced agreement, Prospect plans to acquire an additional 5% from its partner for $4.25 million.

The transaction remains subject to regulatory approvals, with completion expected in April 2026.

The development comes as Prospect Resources sees growing potential at Mumbezhi. In February, the company reported a 63% increase in the project’s copper resources. It also plans to launch a new exploration campaign this year, expected to begin in the second quarter and supported by a recent capital raise.

Sam Hosack, chief executive officer of Prospect Resources, said the company was pleased to increase its stake in the Mumbezhi copper project, which he described as a world-class deposit, on favorable terms. He added that field exploration activities had already resumed and that the team was preparing to restart drilling after the rainy season. According to him, the company’s recent capital raise will support its planned 50,000-meter drilling program.

Strengthening its position in the project while expanding Mumbezhi’s resource potential could prove crucial for Prospect. Analysts expect a structural copper supply deficit in the coming years as demand rises, driven by the energy transition and growing needs tied to artificial intelligence.

Against that backdrop, advancing Mumbezhi toward production could represent a strategic opportunity both for Prospect and for Zambia, which is seeking to increase its national copper output.

Aurel Sèdjro Houenou