Ecora Resources (LSE, TSX: ECOR), a leading critical minerals royalty company, has signed a $50 million streaming deal with Moxico Resources for its flagship Mimbula copper mine in Zambia. This strategic agreement solidifies Ecora’s foothold in the copper sector while ensuring long-term revenue streams.
A Game-Changing Deal
The all-cash transaction covers Mimbula’s entire 11-year mine life, based on its current reserves, with the potential for further extension.
“This acquisition cements copper at the core of our commodity exposure and will immediately enhance earnings and free cash flow,” said Ecora CEO Marc Bishop Lafleche. With over 20 royalty and streaming assets, Ecora continues to expand its influence in critical minerals like copper, cobalt, and nickel.
High-Margin Copper Production
Located in Zambia’s Copperbelt Province, just 10 km southeast of Chingola, Mimbula achieved first production in late 2022. The mine uses heap leaching and solvent extraction/electrowinning (SX/EW) to produce 99.999% pure copper cathodes.
Currently operating at a capacity of 10,000 tonnes per annum (tpa) under Phase 1, Mimbula is undergoing a major brownfield expansion. Phase 2 aims to boost production to 56,000 tpa, with the first step already completed in early 2024—doubling capacity to 20,000 tpa. Last year, the mine produced 14,000 tonnes of copper cathodes at some of the industry’s lowest operating costs.
“Mimbula has everything we seek in an investment: a high-quality ore body, low operating costs, and a stellar management team that has transformed this project from concept to a thriving, high-margin operation,” added Lafleche.
Moxico, which owns 93% of the project, expects to complete the final stages of Phase 2 by early next year, reaching full capacity by mid-2026. Looking ahead, a potential Phase 3 expansion is under consideration to construct a processing plant for cobalt extraction. The site currently holds a resource of 38.6 million tonnes grading 0.037% cobalt.
Strengthening Ecora’s Copper Portfolio
Acquiring the Mimbula copper stream reinforces Ecora’s long-term growth strategy in the copper market.
“Following this transaction, our exposure to copper and base metals as a percentage of NAV will increase to approximately 45% and 75%, respectively. Additionally, about 80% of our portfolio’s royalties and streams will be tied to mines operating in the lower half of their respective cost curves,” said Lafleche.
Ecora’s growing copper portfolio also includes assets such as Mantos Blancos in Chile and the Carlota mine in Arizona, owned by Poland’s KGHM.
Smart Financial Structuring
Ecora will fund the deal through a mix of cash-on-hand and debt, including $30 million from its revolving credit facility.
“The transaction has been structured to frontload copper entitlements over the initial 7-8 years, driving earnings growth while supporting our debt reduction targets over the next 12-24 months,” Lafleche explained.
This latest move underscores Ecora’s strategic vision—leveraging key partnerships to secure high-quality assets, maximize returns, and reinforce its leadership in the global copper sector.
