|Operator||Moxico Resources Plc (private)|
|Mine Type||Open pit|
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|
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.
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.