Trident Royalties PLC (AIM:TRR) said Moxico Resources PLC expects the first copper cathode production from the Mimbula copper project in Zambia to start within days.
Project operator Moxico anticipates the first production "near the end of October" via a standalone 10,000 copper tonne per annum (tpa) heap leach and solvent extraction/electrowinning plant under Phase 1 of the project’s development.
"We are pleased to see such significant progress from a key asset within Trident's royalty portfolio,” said Adam Davidson, chief executive of Trident.
“The near-term commencement of standalone copper production from Phase 1 is a substantial accomplishment, achieved during a challenging operating environment, while the Phase 2 expansion provides a future significant catalyst.”
A bankable feasibility study for a Phase 2 expansion, which would see copper cathode production increase from 10,000tpa to 56,000tpa, was completed in August 2022 alongside a JORC-compliant resource estimate of 98.6 million tonnes at 0.97% total copper.
Privately owned Moxico raised about US$85mln via a private equity placement in the first half of 2022 and secured an offtake arrangement in October with a major offtaker for up to US$150mln.
“Moxico's recent successful financing underscores Trident's policy of acquiring royalties over quality assets with experienced management teams,” said Davidson. “The Mimbula copper royalty provides Trident's investors with long-life copper exposure - a key base and battery metal - from an asset with further upside potential located in a prolific copper district."