Barely a fortnight after announcing a 6% stake increase in Zamsort to 55%, Arc has acquired another 6%, pushing its shareholding to 61%.
It now holds a 61% interest in Zamsort. Effectively Arc takes over Terra Metals 6% interest in Zamsort.
Arc, which raised its stake in Zamsort to 55% earlier this month, has also appointed a highly experienced Zambia-based drilling contractor with significant experience in the Zambian Copperbelt. Under the terms of the agreement, Arc will issue 12-million new ordinary shares to the vendors who agreed to sell their stake in Zamsort. Earlier in the month the company issued 17.5-million new ordinary shares of no par value in Arc Minerals (“Consideration Shares”) to complete the Acquisition. These shares are also subject to a hard lock-in period of 12 months. 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.
Commenting on the critical step forward in consolidating its ownership in Zamsort to increase Arc’s exposure to this large copper/cobalt asset, Arc executive chairperson Nick von Schirnding says the announcement is a clear demonstration that the company is delivering rapidly on its stated strategy of developing two highly attractive projects of scale in Africa.
The first of three drill rigs is due to arrive on site this week and the remaining two drill rigs are expected to arrive shortly thereafter.
“We are very close to starting the planned drill programme at Zamsort and look forward to a period of strong news flow for shareholders, both from Zamsort and Casa,” he added.
Drilling at Casa, which owns the Misisi gold project, in the DRC, has indicated the potential for a gold resource of more than two-million ounces.
Arc Minerals increased its interest in Casa Mining from 87.4% to 91.6% earlier this year.
“We are continuing to follow through on our promise to rapidly deliver value for shareholders at the Zamsort copper/cobalt project both at a corporate level and on the ground. The acquisition of this additional stake in Zamsort takes Arc‘s total ownership in Zamsort to 61% and it is pleasing to see the rapid mobilisation of drilling rigs on site.
“A comprehensive drilling programme at Zamsort is due to begin imminently and we are extremely excited at the prospect of unlocking the significant value which we believe to be inherent within this highly sought after Zambian copper/cobalt asset,” Arc chairperson Nick von Schirnding commented on Monday.
The exploration licences held by Zamsort are located in north west Zambia, 800km from Lusaka and 200km from Solwezi. A commercial scale demonstration plant is under construction at the Zamsort-owned Kalaba copper cobalt site.
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