Ecora Resources PLC, a critical minerals focused royalty company, has announced acquisition of a copper stream from Moxico Resources plc’s producing Mimbula copper mine in Zambia for a total cash consideration of $50 million.

The stream agreement, covering Mimbula’s existing 11-year reserve-based life of mine (LOM) with potential for extension, will see Ecora receive a tiered percentage of copper cathode production. Initially, Ecora will receive 4.7% of production up to 15,000 tonnes, 2.5% between 15,000 and 30,000 tonnes, and 1.0% for production exceeding 30,000 tonnes. Once Ecora receives a cumulative 9,150 tonnes of copper, expected within 7-8 years, its entitlement will reduce to a flat 1.0% of production.

Mimbula, located in the Zambian Copperbelt Province, has demonstrated strong operational performance, producing 14,000 tonnes of copper in 2024 at competitive operating costs. The mine is currently undergoing a brownfield Phase II expansion, set to increase production capacity to 56,000 tonnes per annum by mid-2026. This expansion, coupled with the mine’s high-grade ore body and efficient operations, aligns with Ecora’s investment criteria.

The Mimbula mine produces Grade A LME copper cathode. The brownfield expansion, currently in its final stages, is expected to significantly boost production, further enhancing the stream’s value. Ecora anticipates a payback period of approximately 6-7 years on its investment.

To finance the acquisition, Ecora has utilized $30 million of its existing revolving credit facility’s accordion feature, raising the total borrowing capacity to $180 million. The facility's maturity has also been extended to February 2028, ensuring financial flexibility. The company forecasts that the increased earnings from the stream will facilitate rapid debt reduction within 12-24 months.

Marc Bishop Lafleche, CEO of Ecora, highlighted the strategic importance of the acquisition, stating, “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.” He emphasized the immediate accretive nature of the deal and its contribution to Ecora’s copper and base metal exposure, which will now represent approximately 45% and 75% of the company’s net asset value (NAV), respectively.

The transaction underscores Ecora’s strategic shift towards critical minerals, aligning with the global transition to electrification. With a portfolio heavily weighted towards commodities supporting a sustainable future, Ecora is well-positioned to capitalize on the increasing demand for copper and other essential metals.

The acquisition is expected to be completed in the coming days, subject to the execution of security-related documents.