Zambezi Resources (ASX:ZRL) will look to the equity markets for $1.2 million in funding after receiving environmental approval from the Zambian Government to develop its 100% owned Kangaluwi Copper Project.
Zambezi will now undertake a one for three non-renounceable rights issue at an issue price of $0.15 per share.
The rights issue is not underwritten and if there is a shortfall it could be placed at the director’s discretion.
Funds raised will be applied to working capital to progress the oxide copper project Bankable Feasibility Study stage, and to further develop a fuller funding strategy in the fullness of time.
Approval from the Zambian Government took almost 18 months working with stakeholders particularly local communities and the Zambian Wildlife Authority to address the concerns originally raised by the Zambia Environmental Management Agency over the impact of mining activities in the Lower Zambezi National Park.
It is a prize worth pursuing as the discovery east of Lusaka (capital of Zambia) effectively opened a new copper province in the country and Kangaluwi boasts a JORC resource of 308,000 tonnes of copper metal of which 50,000 tonnes is the oxide resource.
There is also an additional exploration target of 100 million – 160 million tonnes at 0.5% – 0.7% copper.
So with a mining license in hand and environmental approval it is now onto finalizing its feasibility studies to back on the road to becoming a copper producer.