Volatile markets force Zambezi change

Uncertainty in global markets has prompted West Perth-based Zambezi Resources Ltd to suspend all but one drilling activities in Zambia in a bid to redirect its focus to its main copper discovery.

The company will also seek to raise up to $4.1 million through a non-renounceable rights issue.

Zambezi said it will suspend all drilling operations in Zambia but will keep one drill rig operating at its wholly-owned Kangaluwi copper project until November.

"Zambezi remains confident that issues arising from the recently introduced changes in windfall and variable taxes in Zambia will be resolved to the satisfaction of all stakeholders," the company said in a statement.

"This will provide certainty for the significant investment required to drill out and develop the Kangaluwi project."

Funds raised from the rights issue will allow the company to maintain lower-level exploration activities and target drilling over the coming year, and allow the company to process drill results.

Zambezi intends to maintain full ownership of the Kangaluwi project.