Copper Royalty

Project: Mimbula

Location Zambia
Operator Moxico Resources Plc (private)
Commodity Copper
Mine Type Open pit
Stage Production

Mimbula and Zuka Resources (JORC 2012)*

Measured  51.7Mt @ 1.0% TCu
Indicated  25.4Mt @ 0.91% TCu
Inferred 16.7M @ 0.95%TCu
Total 93.7Mt @ 0.97%TCu

Mimbula Reserve (JORC 2012)

Proven and Probable  67.5Mt @ 0.92% Tcu
Source: Moxico Resources Plc (August 2019) Mimbula Resources are JORC (2012) compliant, While Zuka Resource is non-compliant. See announcement dated 29 June 2020 for resource breakdown.

Trident owns a 1.25% Gross Revenue Royalty (“GRR”) over all copper produced from the Mimbula Mine in Zambia, which is operated by Moxico Resources Plc. The GRR will decrease to 0.3% upon US$5.0 million being paid on the royalty, with a subsequent decrease to 0.2% once the royalty has been paid on 575,000 tonnes of copper. In addition, the GRR is subject to a Minimum Payment Schedule in which the higher of the minimum amount, or the Gross Revenue Royalty amount, are due; specifically:

  • No required minimum payments on production in 2020 (GRR rate still applies);
  • Minimum payments of US$375,000 per quarter in 2021;
  • Minimum payments of US$500,000 per quarter in 2022; and
  • Minimum payments of US$750,000 in each of the first two quarters of 2023.
At current copper prices, Moxico’s long-term production profile is expected to exceed that required for the Minimum Payment Schedule. The GRR is applicable to production from the Mimbula Mine, comprising of 100% of production from licences 21816-HQ-LML (Mimbula), 8440-HQ-SML (Zuka), and on 50% of the production from licence 8514-HQ-SML (OB18). The licences collectively cover 1,271 ha. Mimbula is located adjacent to the Konkola Copper mining complex and has excellent access to infrastructure. 

Mimbula has JORC (2012) Measured and Indicated Resources of 69.8Mt grading 0.96% total copper (“TCu”) for approximately 668,000 tonnes of contained copper and an Inferred Resources of 14.2 Mt grading 0.92% TCu for approximately 130,000 as at August 2019. In addition, the Company has a non-compliant Resource on the Zuka licence of 7.3Mt grading 1.1% TCu for 80,400 tonnes of contained copper. The Company has a strategic, life-of-mine tolling agreement with Konkola Copper Mines (“KCM”) in which the oxide ores are currently being processed through the Nchanga Tailings Leach Plant (“TLP”), producing LME Grade A copper cathode.

The Mimbula Copper Royalty provides Trident with attractive exposure to a significant and growing copper asset managed by an experienced team at a time when the global copper market is forecast to enter into a supply deficit.