Central Copper Resources (CCR) announced the completion of its $3mn group pre-IPO capital raise and the acquisition of Armada Minerals in Zambia.
The company shared that it has completed the acquisition of Armada Minerals for its wholly-owned Lunga project in Zambia. Lunga is situated near the Chifumpa Mine having a grade of over 4pc copper resources. The top officials shared that this acquisition would complement the company’s assets in the Democratic Republic of the Congo (DRC).
The company has identified four target areas for initial drilling, including two drill-ready targets for open pit development. A portion of the proceeds from the IPO is to be directed towards Lunga to advance this highly prospective license.
The pre-IPO funding includes an investment of $2mn from a TSX and NYSE-listed $1bn market cap company. CCR will complete the necessary documentation ahead of its planned IPO next quarter.
The company completed the pre-feasibility engineering portion of the study of the Mbamba Kilenda project in DRC, during the lockdown period. The company plans to ramp up output to 1mn mt annually in addition to producing 30,000mt of copper concentrates.
CCR has a 65pc interest in Comilu, a company that holds 13 licences in DRC’s Mbamba Kilenda project, a high-grade copper project at 3pc Cu. These 13 licenses cover an 85 km area having the focus on a 4.5 km area on the eastern side of Mbamba Kilenda, having estimated 11.8mn mt reserves at 3.13pc copper grade.
Mbamba Kilenda has the main road passing through the project linking Matadi port and a nearby power station.
PFS also outlined the first production in early 2022, subject to financing. The total CAPEX requirement is estimated at $46.7mn for the mining evaluation phase and $180mn for the upgrades and expansion. CCR’s economic analysis uses a conservative copper price of $2.65/lb Cu and indicates an Internal Rate of Return (IRR) of 50pc and a Net Present Value (NPV) of $354mn, which will be confirmed by the ongoing work program.
Headquartered in the UK, CCR is a Mauritius registered company having a 67pc stake in the Mbamba Kilenda project.