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PERTH (miningweekly.com) – ASX-listed Blackthorn Resources is on the hunt for a project partner to help fund the development of its Kitumba copper project, in Zambia.
At the end of April, Blackthorn announced that an optimised feasibility study for the project had more than tripled Kitumba’s expected value, estimating that the project would have an internal rate of return of 21% and a net present value of $461-million.
The project would require a capital investment of about $680-million to develop, and could deliver yearly production of up to 70 000 t, with an average of 58 000 t/y over the 11-year mine-life.
Blackthorn said on Friday that with the release of the optimised feasibility study, the company could now hold “fully informed” discussions with potential partners.
“Blackthorn will actively explore all avenues to realise shareholder value for the project and to secure its progress,” the miner reported, adding that it was prepared to look at a range of asset-level partnerships and financing options in preference to undertaking a dilutive equity raising.
The junior developer was expected to launch a definitive feasibility study (DFS) for the Kitumba project in parallel with these discussions.
The DFS would be funded by available funds, as well as funds from the divestment of Blackthorn’s interest in the Perkoa zinc joint venture, in Burkina Faso, to partner GlencoreXstrata. Blackthorn has signed an agreement with Glencore to sell its 27.3% stake for $12-million.