Ecora enters into $50m copper stream agreement over Zambia project
Critical minerals-focused royalty company Ecora has entered into a $50-million copper stream with Moxico Resources over its Mimbula mine, in Zambia, covering the mine's existing reserve-based life-of-mine (LoM) of 11 years.
Mimbula's Phase 1 produced first copper in late 2022. It produced 14 000 t of copper in 2024, but it expected to ramp up to steady-state production of 56 000 t/y of copper cathode by mid-2026, when a brownfield Phase 2 expansion project is completed.
London-listed Ecora notes that the proceeds from the transaction will bolster UK-based Moxico's liquidity for the brownfield expansion.
It will also "cement copper at the core of our commodity exposure and be immediately accretive to earnings and free cash flow," says Ecora CEO Marc Bishop Lafleche.
“Mimbula has everything we look for in an investment; it is a high-quality orebody, 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.
“The acquisition of a producing copper stream enhances Ecora’s strong organic copper growth profile across the short, medium and long term. Following the transaction, Ecora’s copper and base metal exposure as a percentage of net asset value will be approximately 45% and 75% respectively, with approximately 80% of the royalties and streams in Ecora’s wider portfolio over mines and projects within the lower half of their respective cost curves," he adds.
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