African Pioneer PLC said Thursday that it has entered into an option agreement with First Quantum Minerals Ltd. in relation to four of its copper exploration licenses in Zambia.
As part of the deal, First Quantum has the right to undertake exploration across African Pioneer’s licenses. If the exploration is successful, First Quantum may earn a shareholding of up to 75% in African Pioneer Zambia, a subsidiary of African Pioneer and the holder of the licenses.
The licenses are located less than 100 kilometers away from First Quantum’s Sentinel copper mine.