(Alliance News) - African Pioneer PLC shares rose on Friday, after the company noted progress on an option agreement relating to its licences in the Central African Copper Belt.
African Pioneer is a natural resource explorer and developer focused on Sub-Saharan Africa. Shares in the company were up 16% at 2.32 pence each in London at midday on Friday.
This followed an update from the company regarding a 2022 option agreement between its 80% owned subsidiary African Pioneer Zambia Ltd and First Quantum Minerals Ltd, a copper producer with operations in Australia, Europe, South America and Africa.
In January 2022, the pair entered into an agreement for four of the subsidiary's five Zambian exploration licences in the highly prospective Central African Copper Belt.
According to the deal, First Quantum would first spend USD500,000 on each of the licences. It would then enter into an earn-in period through the issue of option exercise notices which, following completion of a technical report, would earn it a 51% interest in African Pioneer Zambia.
On Thursday, African pioneer received confirmation that First Quantum had delivered a notice to exercise options over the last two Zambian exploration licences 27770-HQ-LEL and 27768-HQ-LEL, which are subject to the agreement.
In October, the company confirmed that First Quantum had exercised its options over the licences 27767-HQ -LEL and 27771-HQ-LEL.
The first earn-in period during which First Quantum must prepare a technical report has been extended to February 28, 2026. During this period, First Quantum must demonstrate an indicated mineral resource of at least 300,000 tonnes of contained copper in the four licences subject to the option agreement.
Executive Chair Colin Bird said: "We are very pleased to be advised by First Quantum that they have exercised their option over the remaining two licences so that they have now exercised their option over all four licences the subject of the option agreement. The initial period under the option agreement has been extremely successful for both First Quantum and African Pioneer with the Western Foreland and Kamoa-style mineralising environment being established as well as near surface mineralisation in the fold- and thrust domain further to the east on some of our licences."
By Hugh Cameron, Alliance News reporter
Comments and questions to newsroom@alliancenews.com
Copyright 2024 Alliance News Ltd. All Rights Reserved.