ASX-listed Plymouth Minerals has entered into two exclusive option agreements to acquire a package of copper-gold exploration and production assets in the Zambian copperbelt, which could see the company rerated.The company revealed that the agreements include Plymouth proposing to acquire shares in an entity with indirect interests or rights to indirectly acquire a portfolio of prospective copper-gold exploration tenements covering more than 2 700 square kilometres in the Zambian Copperbelt and other prospective regions within Zambia, as well as a share sale transaction by which Plymouth proposes to acquire an equity interest in an entity which owns a tenement with small scale existing copper production. Under the first agreement, Plymouth said that it may acquire up to a 100% interest in Finesse Projects , which indirectly owns (or proposes to acquire) 80% of a large package of exploration ground in North Western Zambia. Under the second agreement, Plymouth may acquire a 10% interest in H and S Mining in Zambia, which operates the Kasempa copper mine, also in North Western Zambia. Meanwhile, Plymouth advises that the exploration assets provide a low-cost entry point into a portfolio of prospective copper exploration ground in close proximity to a number of world class mining operations, including First Quantum Mineral’s Kansanshi copper mine and Barrick Gold’s Lumwana copper mine.
The Kasempa copper mine is a small, open pit operation and was commissioned with first blister copper production in late 2012, and is currently undergoing ramp-up. It is surrounded by 650 square kilometres of additional prospective exploration ground.The company adds that there is also further exploration tenure in the North Western region of Zambia which is viewed by Plymouth as highly prospective for copper and gold mineralisation, potentially analogous to Blackthorn Resources’ Mumbwa IOCG-style deposit. According to Plymouth, the agreements are conditional and the company will now undertake a detailed due diligence process, and will provide further information to the market in due course as due diligence progresses. Further, subject to completion of due diligence and election to proceed, Plymouth says it will appoint experienced African-based corporate manager Adam Clode to the role of business development manager to assist in identifying further opportunities in Zambia and other African countries. Plymouth also advises that it has secured commitment for a placement of up to 6,400,000 ordinary shares at AU$0.10 per share, to raise AU$640 000. The capital raise has been underwritten by Perth-based corporate advisory group Energy Capital Partners, who are acting as lead manager and broker.