Critical minerals-focused royalty and streaming company Ecora Resources has entered into a $50m copper stream agreement with Moxico Resources for production at the Mimbula copper mine in Zambia.
This deal aligns with Ecora’s strategy to enhance its copper growth profile and drive earnings in the short to long term.
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The stream will cover Moxico-owned Mimbula’s existing reserve-based life of mine (LOM) of 11 years, with the possibility of further extension.
Once Ecora accumulates a total of 9,150 tonnes of copper, which is forecast to occur in approximately seven to eight years, its entitlement to the stream will decrease to 1% of the copper cathode produced for the remainder of the mine’s operational life.
Copper will be supplied to Ecora on a quarterly basis, with continuous payments to Moxico set at 30% of the quarterly average copper price on the London Metal Exchange for all copper received under the stream.
The stream structure mitigates ramp-up risk and is expected to pay back within six to seven years.
Ecora has activated $30m from its revolving credit facility’s $75m accordion feature to finance the transaction, increasing the total committed borrowing facility to $180m, with around $55m still available.
Ecora CEO Marc Bishop Lafleche said: “Following strong momentum in Q4 [fourth quarter], we are excited to start 2025 with the announcement of a new partnership with Moxico in relation to the Mimbula copper mine, which will cement copper at the core of our commodity exposure and be immediately accretive to earnings and free cash flow.
“Mimbula has everything we look for in an investment; it is a high-quality ore body, with low operating costs, and with an exceptional management team who have developed the project from concept to a high-margin operation currently undergoing a brownfield expansion to increase production capacity.”
Located in the Zambian Copperbelt Province, Mimbula started producing copper in late 2022. It is a high-margin mine with low operating costs that produces Grade A London Metal Exchange cathodes.
In 2024, the mine produced 14,000 tonnes (t) of copper at operating costs that rank in the lowest half globally.
A phase two expansion is under way, which is projected to increase copper cathode production to around 56,000t per annum by mid-2026.
The proceeds from the stream will enhance liquidity for Mimbula’s expansion and other corporate purposes.
The completion of the transaction is anticipated soon.
Atlantic Metals, a subsidiary of Moxico Resources, signed an agreement with mineral exploration company Latin Metals in October 2024 to earn a 75% interest in two copper exploration projects in Argentina.
