RNS

RNS Number : 6323R
Arc Minerals Limited
18 June 2018
 

Arc Minerals Ltd / Epic: ARCM / Market: AIM / Sector: Mining & Exploration

 

 

 18 June 2018

 

Arc Minerals Ltd 

 

Increase of interest in Zamsort and New Drilling Contractor

 

Arc Minerals ("Arc" or the "Company") is pleased to announce a further increase in its ownership of Zamsort Limited ("Zamsort") to 61% following the acquisition of an additional 6% interest from two separate shareholders of Zamsort ("the Vendors").

 

The Company will issue 12,000,000 new ordinary shares of no par value in the Company ("Consideration Shares") to the Vendors for the acquisition of the additional 6% interest in Zamsort. These shares are subject to a hard lock-in period of 12 months.  In addition, the Vendors shall be issued with a warrant ("Share Warrant") over a total of 2,520,000 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 40% premium over the closing mid-market price of 4.2 pence per Ordinary Share on 15 June 2018.  The Share Warrant is exercisable from 18 June 2018 and expires on 18 June 2020. 

 

Arc also holds a convertible loan note in Zamsort which is convertible into an additional 5.34% interest in the share capital of Zamsort.

 

Appointment of Drilling Contractor

 

Arc has appointed a highly experienced Zambian based drilling contractor with significant experience in the Zambian Copperbelt. 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. The Company will provide a further update on the drilling programme in the near future.

 

Nick von Schirnding, Executive Chairman of Arc commented:

 

"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.

 

We look forward to providing further updates to the market in the near-term on our continued progress with the drilling programme at Zamsort as well as the Casa gold project."

 

 

Issue of Equity to Contractor

 

The Company also announces that it has issued 1,000,000 ordinary shares of no par value ("Consultants' Shares") of the Company to consultants to the Company in lieu of fees. These shares are also subject to a hard lock-in period of 12 months. In addition, it has issued 2,000,000 incentive options ("Share Options") which have an exercise price of 6 pence per Ordinary Share.  The Share Options expire on 18 June 2020. 

An application has been made for the 13,000,000 Consideration Shares and the Consultants' Shares to be admitted to trading on the AIM market of the London Stock Exchange ('Admission'). Admission is expected to occur on or around 21 June 2018.

 

Total Voting Rights

Following the issue of the Consideration Shares and Consultants Shares, the total issued share capital of the Company consists of 569,540,600  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 569,540,600  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:

·     99% interest in CASA Mining Limited, a private company that has a 71.25% interest in the 1.5-million-ounce inferred Resource Akyanga gold deposit in the DRC.

·     A 61% interest in Zamsort Limited, a private company focused on a prospective copper and cobalt licence in the Zambia Copperbelt, with approximately a five percent balance and interest (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;

·     A 18.48% interest in Andiamo Exploration Limited, a private company exploring for gold and base metals VMS targets in Eritrea.

 

For more information visit www. arcminerals.com

 


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