Ecora Resources has entered a $50 million copper stream agreement with Moxico Resources for the Mimbula mine in Zambia, a deal expected to enhance copper production and improve the company’s earnings profile. The agreement includes quarterly copper supply and mitigates ramp-up risks, with repayment anticipated within six years. The mine, which produces high-quality cathodes, is undergoing an expansion to increase production capacity significantly.
Ecora Resources has finalized a $50 million copper stream agreement with Moxico Resources for the Mimbula copper mine in Zambia. This agreement aligns with Ecora’s objective to bolster its copper profile and enhance earnings over the short and long term. The deal will encompass the mine’s existing 11-year reserve-based life of mine (LOM), with a possibility for extension.
Ecora Resources’ $50 million investment in the Mimbula copper mine strengthens its copper profile, ensuring earnings growth through a strategic partnership with Moxico Resources. The low operating costs and anticipated expansion of the mine position Ecora favorably in the copper market, while the structured financing mitigates risks associated with ramp-up phases. As production capacity increases, the stream agreement is expected to yield a beneficial return on investment over time.
Original Source: www.mining-technology.com
