Arc Minerals Limited Start of Drilling; increase of Zamsort ownership (2330U)
11 July 2018 - 4:00PM
UK Regulatory
TIDMARCM
RNS Number : 2330U
Arc Minerals Limited
11 July 2018
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 +44 (0) 20 3874
Nick von Schirnding (Chairman) 8664
SP Angel (Nominated Adviser & Broker) +44 (0) 20 3470
Ewan Leggat / Lindsay Mair / Soltan Tagiev 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 turec Gold
Project;
For more information visit www.arcminerals.com
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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