JOHANNESBURG (miningweekly.com) – ASX-listed junior Zambezi Resources on Thursday announced that it had received approval from the Zambia government for its 100%-owned Kangaluwi copper project’s environmental-impact statement (EIS), enabling the company to take the project to the bankable feasibility study (BFS) stage.

“Our team in Zambia and Australia spent almost 18 months working closely with all stakeholders, particularly local communities and the Zambian Wildlife Authority, to address the concerns originally raised by the Zambia Environmental Management Agency over the impact of mining activities in the Lower Zambezi National Park,” the miner said.

Obtaining the formal approval of the EIS by the Zambia Ministry of Lands, Natural Resources and Environmental Protection gave the company the green light to move forward with the development of the project, Zambezi said.

The company added that it would undertake a pro-rata nonrenounceable rights issue to raise funding for administration expenses and working capital to proceed towards the oxide copper project BFS stage and further develop its funding strategy.

Eligible shareholders will be offered one new share for every three shares held on the record date of 17:00 (WST) on February 7, 2014, at an issue price of $0.15 a share to raise up to A$1.2-million.

The company added that its major shareholder, Auctus Resources Fund, indicated that it intended to take up its full entitlement under the rights issue.

The rights issue was not underwritten and the directors reserved the right to issue the shortfall at their absolute discretion.

The new shares would rank equally in all respects from the date of allotment with the existing class of quoted ordinary shares.

“The funds raised will be applied principally to administration expenses and working capital, which will allow the company to proceed towards the oxide copper project BFS stage and further develop its funding strategy,” Zambezi said.