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Central Copper Resources (CCR) has announced the successful completion of its US$3 million group pre-IPO capital raise and the acquisition of Armada Minerals in Zambia.

The Company has successfully raised US$3 million in pre-IPO funding, including an investment of US$2 million from a TSX and NYSE-listed US$1 billion market cap. company. CCR will now look to finalise the necessary documentation ahead of its planned IPO next quarter.

Kevin van Wouw, CEO, commented:

“We are delighted to have completed this pre-IPO fundraising of c.US$3 million, with support from both existing and new shareholders, including a US$2 million subscription from a large strategic investor. This funding will allow the Company to advance operational activities at all assets while completing its IPO on the London AIM Market.

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“Additionally, we are pleased to announce Central Copper’s acquisition of Armada Minerals for the Lunga project in Zambia. Armada Minerals will be an important addition to Central Copper’s portfolio and its Zambian assets are expected to complement our assets in the DRC.

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“We are well underway with confirmatory work, having completed the pre-feasibility engineering portion of the study of Mbamba Kilenda project during the difficult COVID lockdown period. Our plans to ramp up to 1 Mt per year ROM and beyond, producing 30,000 t of Copper per year in concentrate will be guided by adjacent ongoing exploration as to subsequent expansions beyond the initial production rate.

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“CCR can now start to accelerate its development and exploration operations across its two assets with the goal of becoming a new prominent copper mining developer/producer in Africa.”

CCR’s has a 65% interest in COMILU, a company that holds 13 licences in Democratic Republic of Congo (DRC), Mbamba Kilenda project which is high-grade copper project (at 3% Cu) and near-term producer. These 13 licenses cover a contiguous 85 km of the geological feature hosting the mineralisation and the focus to date has only been on the 4.5 km strike on the eastern side of Mbamba Kilenda, which has already yielded a JORC (2012) compliant Mineral Resource Estimate of 11.8Mt @ 3.13% CuEq.

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The resource is open-ended to the west and to the east along this 4.5 km strike and at depth, providing the potential to significantly increase the resource from planned exploration drilling. Mbamba Kilenda benefits from good infrastructure with a main road passing through the Project, which links to the Matadi port and a nearby power station.

In October 2020, CCR completed the engineering phase of its PFS. The study was based on a mining evaluation phase for the first three years producing a direct shipping ore (DSO) of 10-15,000 t p.a. copper in concentrate (approximately 20-25% Cu).  From Year 3, it is envisaged that the process plant is upgraded with the installation of Milling and Floatation facilities, enabling production to be increased to c.1Mt p.a. run-of-mine (ROM), producing >30,000t p.a. copper in concentrate.

Work completed on the PFS also outlined expected copper recoveries of c.89% and first production in in early 2022, subject to financing. The total CAPEX requirement is estimated at US$46.7 million for the mining evaluation phase and US$180 million for the upgrades and expansion in the first mining phase following Year 3. Strong cashflow is produced from Year 2 onwards.

The Company’s economic analysis uses a conservative copper price of US$2.65/lb Cu and indicates an Internal Rate of Return (IRR) of 50% and a Net Present Value (NPV) of US$354 million, which will be confirmed by the ongoing work programme.

Acquisition of Armada Minerals

CCR has also completed the acquisition of Armada Minerals for its wholly owned Lunga project in Zambia. Lunga is situated in close proximity to the Chifumpa Mine, which has a resource (non-JORC Code (2012) compliant) with a grade of over 4% copper.

Four priority targets areas have been identified for an initial drilling campaign, including two drill ready targets expected to be amenable to open pit development. A portion of the proceeds from the IPO are to be directed towards Lunga to advance this highly prospective licence.