Prospect Resources Limited is pleased to announce that it has received binding commitments from new and existing institutional and sophisticated investors for an equity placement to raise A$45 million via the issue of approximately 118.4 million shares.
Prospect’s Managing Director and CEO, Sam Hosack, commented:
“We are very pleased with the support demonstrated for our Mumbezhi advancement strategy through this equity raising. The strong demand for this issuance also firmly validates our belief in the long-term growth potential on offer across the broader Mumbezhi tenure, which covers two granted large-scale mining licenses. I would like to thank existing shareholders and new investors who participated in the placement for their backing.
“The raised funds allow us to both accelerate drilling and metallurgical test work during the next 18-24 months, as well as plan more confidently across the broader suite of project technical study activities set to be undertaken over that period. Our Phase 3 drilling programme is set to commence early in Q2 2026 and targeted to further grow and upgrade resources at the flagship Nyungu Central deposit, as well as test highly prospective regional exploration targets at Chipimpa, Sharamba, Nyungu South and Kamafamba. It is our view that there is no shortage of potential large-scale resource upside waiting to be unlocked at Mumbezhi.”
“Our collaboration with First Quantum Minerals continues to provide deep technical insight which we see adding significant value to the work programme to come at Mumbezhi.”
Use of proceeds Funds raised from the Placement will be applied to:
- Delivery of a further 50,000m of resource and exploration focused drilling at Mumbezhi during 2026 and 2027, with the aim of first growing and then upgrading the existing MRE and testing key regional exploration targets across the Mumbezhi Mining Licences;
- Metallurgical studies aimed at evaluating gold and cobalt recoveries from Mumbezhi;
- Completion of an internal Scoping Study in H2 2026, to support further evaluation works and targeted delivery of a Pre-Feasibility Study during H2 2027;
- General working capital to provide balance sheet flexibility, in addition to costs associated with the equity raising; and
- Business development initiatives within Zambia and more broadly
Placement details
The Placement was conducted at an issue price of A$0.38 per New Share and was supported by both existing shareholders and new investors, with strong demand received from both domestic and offshore institutional and sophisticated investors.
The issue price represents an 8.4% discount to Prospect’s last traded price of A$0.415 and a 12.7% discount to Prospect’s 10-day volume weighted average price (VWAP) of A$0.435.
The Placement comprises:
- An unconditional tranche to raise approximately A$38.2 million via the issue of approximately 100.5 million New Shares, to be issued under the Company’s existing placement capacity via ASX Listing Rules 7.1 and 7.1A (Unconditional Tranche). Settlement of the Unconditional Tranche is expected to occur on or around Friday, 20 February 2026, and allotment and trading of New Shares on or around Monday, 23 February 2026.
- A conditional tranche to raise approximately A$6.8 million via the issue of approximately 17.9 million New Shares to Eagle Eye Asset Holdings Pte Ltd (Eagle Eye), who participated on a pro-rata basis to maintain its 15.1% shareholding in Prospect (Conditional Tranche). The Conditional Tranche is subject to shareholder approval being obtained at a Prospect Extraordinary General Meeting (EGM) expected to be held in early April 2026. Settlement and allotment of New Shares issued to Eagle Eye under the Conditional Tranche is expected to take place shortly after the EGM.
New Shares issued under the Placement will rank pari passu with existing Prospect ordinary shares.
Canaccord Genuity (Australia) Limited and Argonaut Securities Pty Limited acted as Joint Lead Managers and Joint Bookrunners to the Placement. Commonwealth Securities Limited acted as Co-Manager to the Placement.
Mumbezhi Phase 3 drilling programme
Prospect plans to commence its Phase 3 drilling programme at Mumbezhi in Q2 2026. This programme is set to target further growth and then classification upgrade in the recently updated MRE for Mumbezhi totalling 173.8Mt @ 0.44% Cu for 771.9kt contained copper.
This work stream will be primarily directed towards the growth of the flagship Nyungu Central deposit along strike, where the Company also recently released maiden cobalt and gold MRE components, and includes an objective of growing these important by-product credits content within the deposit.
In addition to targeting MRE extension and upgrade at Nyungu Central, key regional targets defined at Chipimpa, Sharamba, Nyungu South and Kamafamba are also set to undergo systematic exploratory drilling as part of the Phase 3 programme and the Company is now well funded to aggressively follow up on exploration success. Specific diamond drill targeting of these prospects is set to be driven by a combination of airborne geophysical survey data and interpretation, detailed soil geochemistry, geological mapping and sampling, ground IP surveys and, where required, first-pass exploratory aircore and/or Reverse Circulation (RC) drilling.
