Investing in Exploration

ARC Minerals invests in natural resource focused companies and projects that are in the exploration stage of the mining industry value chain. Exploration assets offer investors exposure to exciting opportunities that can potentially be highly value accretive.

Typically the successful exploration of natural resources on any project will require significant capital investment. The deployment of exploration risk capital is designed to take a discovered mineral asset to a point where an international resource classification can be awarded to the asset by an independent natural resource verification company.

When exploration projects are brought up to an international resource classification category, an exploration project becomes somewhat de-risked and can then move into the development phase which can lead subject to commodity pricing, into mine development and production.

In order to finance the drilling, geological and mineral technical work needed to progress its projects Arc Minerals will need to raise funds through the issue of additional equity or bring in partners to help fund exploration and development costs. The Group’s ability to raise further funds will depend on the success of its investment strategy and acquired operations. The Group, or the companies in which it has invested, may not be able to raise, either by debt or by further equity, sufficient funds to enable completion of planned exploration, investment and/or development projects.

ARC Minerals places strong corporate oversight on its investee companies to ensure risks associated with exploration are mitigated as much as possible.

By investing in exploration, ARC Minerals offers shareholders and investors the opportunity to benefit from what can hopefully be a transition in value as a resource asset increases in value through the investment in exploration. When a natural resource asset is taken up the value curve to the point where it becomes and independently verified mineral resource, opportunities to release value for ARC Minerals shareholders can then emerge.