Arc Minerals Ltd / Epic: ARCM / Market: AIM / Sector: Mining & Exploration
11 July 2018
Start of Drilling; increase of Zamsort ownership
Arc Minerals ("Arc" or the "Company") is pleased to announce that it has today commenced its 11,000-metre drilling programme at the Zamsort Copper Cobalt Project ("Zamsort").
The 11,000-metre drilling programme consists of 6,600m diamond drill and 4,400m RC drilling which is aiming to delineate a shallow oxide resource for the Commercial Scale Demonstration plant which is currently being optimised as well as to establish a maiden mineral resource estimate at Kalaba.
In addition, Arc has today acquired a further 5% stake in Zamsort (the "Acquisition") in a share exchange which will increase Arc's holding in Zamsort from 61% to 66%. This leaves one remaining 34% shareholder, Kopara Investments Limited ("Kopara") in place at Zamsort.
Following on from this, Arc has today agreed with Kopara to fund all future expenditure at Zamsort pro-rata to their shareholdings.
Nick von Schirnding, Executive Chairman of Arc Minerals commented:
"This is a yet another step forward in consolidating our ownership in Zamsort and to increase Arc's exposure to this large and exciting copper-cobalt asset. I am also pleased to note that we have agreed a funding structure with our joint venture partners.
We look forward to a period of strong news flow as we report results from our drilling programme."
Increase of interest in Zamsort
The Company will issue 10,000,000 new ordinary shares of no par value in the Company ("Consideration Shares") to the Vendor as consideration for the Acquisition. The Vendor will also be issued with a warrant ("Share Warrant") over a total of 2,100,000 new ordinary shares of no par value ("Ordinary Shares") of the Company with an exercise price of 6 pence per Ordinary Share. This represents an approximate 42% premium over the closing mid-market price of 4.2 pence per Ordinary Share on 10 July 2018. The Share Warrant is exercisable from 11 July 2018 and expires on 11 July 2020.
In addition, Arc holds a convertible loan note in Zamsort which is convertible into an additional 5.34% interest in the share capital of Zamsort.
Application has been made for the 10,000,000 Consideration Shares to be admitted to trading on the AIM market of the London Stock Exchange ('Admission'). Admission is expected to occur on or around 17 July 2018.
Total Voting Rights
Following the issue of the Consideration Shares and Consultants Shares, the total issued share capital of the Company consists of 579,540,600 Ordinary Shares of no par value with voting rights. The Company does not hold any Ordinary Shares in treasury. Therefore, the total number of voting rights in the Company is 579,540,600 and this figure may be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change in their interest in, the share capital of the Company under the FCA's Disclosure and Transparency Rules.
Market Abuse Regulation (MAR) Disclosure
Certain information contained in this announcement would have been deemed inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 until the release of this announcement.
**ENDS**
Contacts
Arc Minerals Ltd Nick von Schirnding (Chairman) |
+44 (0) 20 3874 8664 |
SP Angel (Nominated Adviser & Broker) Ewan Leggat / Lindsay Mair / Soltan Tagiev |
+44 (0) 20 3470 0470 |
Notes to the Editors
Arc Minerals is an AIM listed exploration and mine development company focused on a diversified portfolio of mining projects with interests in Slovakia, Eritrea, the Democratic Republic of the Congo and Zambia.
ARC Minerals current holdings include:
· 100% interest in CASA Mining Limited, a private company that has a 71.25% interest in the 3-million-ounce inferred Resource Akyanga gold deposit in the DRC.
· A 66% equity interest in Zamsort Limited ("Zamsort"), a private company focused on a prospective copper and cobalt licence in the Zambia Copperbelt, together with a convertible loan to Zamsort which converts into approximately a five percent additional equity interest in Zamsort, with interest on the convertible note being rolled forward to the end of 2018;
· 100% ownership of the Kremnica Mining Licence Area in Slovakia which host the 1.3Moz AuEq Au PFS stage Ṧturec Gold Project;
For more information visit www.arcminerals.com
