AIM-quoted Ortac (LON:OTC) has furthered its exposure in Africa - investing in a private firm, which holds a prospective copper licence in Zambia.
It has agreed an initial subscription of US$600,000 of convertible loan notes for 10.71% stake in Zamsort, which allows for due diligence with a call option valid for one year which, if exercised, would allow a further subscription by Ortac of US$600,000 loan notes and increase Ortac's stake in Zamsort to 19.35%.
Kalaba Cu-Co has an estimated non-JORC oxide resource of 16.59 million tonnes at 0.94% copper equivalent estimated in the small scale mining licence on limited exploration drilling carried out during the late 1990's.
More than 30,000 tonnes of screened ore grading at 3.5% acid soluble copper (ASCu) are stockpiled on the site, ready to be shipped and toll treated.
Ortac's chief executive Vassilios Carellas said: "Zambia is considered to be one of the most politically stable and mining friendly countries in Africa with the Zambian copper belt being recognised as the leading source of copper from the African continent over the last decade.
"Copper mining in Zambia has gradually migrated westward. The most recent mine commenced production in 2014 and is located 40km to the east of Zamsort's Licence area.
"We consider the Kalaba Project to be one of the most exciting, undeveloped polymetallic assets in Zambia at the moment, offering existing small scale production along with the opportunity to explore a world class licence with the potential to host Zambia's next big mine development."
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