08:00 Tue 15 May 2018
Arc Minerals Limited - Acquisition and Placing of Equity
('Arc' or the 'Company')
Acquisition and Placing of Equity
Arc holds a convertible loan note in Zamsort which is convertible into an additional 5.34% interest in the share capital of Zamsort, so Arc's interest in the share capital of Zamsort could potentially be increased to 54.34%. The Company has commenced discussions with the
The Terra shareholding in
Highlights
· Transformational event for Arc providing exposure to the most prospective ground in the 'Domes' region of the Zambian Copperbelt - now a world-class province hosting three major producing copper mines
· The Zamsort large scale exploration license encompasses 9 of the 30 high priority targets ranked by the Anglo American/Equinox Minerals joint venture over the area in the late-90's of which the top 7 targets fall within Zamsort's licenses
· Existing near surface estimated Copper-Cobalt oxide Resource of 16.59Mt @ 0.94% Cu (non-JORC code compliant) with a historical exploration target of
· Production of Copper and Cobalt hydroxide cake from commercial scale demonstration plant ("CSD plant") anticipated within six months with 10,000 tonnes of screened ore grading 2.08% Copper and 0.29% Cobalt stockpiled on site
· New management team in place at Zamsort
"This transaction is highly attractive for
Given that this asset continues to be coveted by numerous interested parties, I believe there will be no shortage of strategic partnerships that potentially could emerge. I believe this chapter represents a transformation for
The Zamsort Copper-Cobalt project, located approximately 900 km from
Over the last 13 years, three new major copper mines have been discovered and constructed to exploit the mineral resources in the new western part of the Domes region of the Zambian Copperbelt. This region now accounts for more than 80% of Zambian copper production and Zamsort is in close proximity to large operations such as First Quantum Minerals'
The current LPL encompasses 9 of 30 exploration targets that were ranked in the late-90's by the JV over the
At the time of the JV, Kalumbila was originally ranked number 22 out of JV's top 30
Previous limited exploration work at Zamsort has resulted in the delineation of a non JORC-code compliant in-house copper-cobalt Resource estimate of 16.59Mt @ 0.94% Cu Eq.,
The most recent trenching results completed in the Zamsort open pit include:
· 95m @ 2.08% Copper and 0.26% Cobalt in pit trench line 3,
· 30m @ 2.10% Copper and 0.24% Cobalt in pit trench line 4,
· 20m @ 1.73% Copper and 0.25% Cobalt in pit trench line 7,
· 15m @ 0.72% Copper and 0.38% Cobalt in pit trench line 6.
Zamsort have advanced the construction of a CSD plant (see Figure 2), with the plant being approximately 75% complete. It is anticipated that the plant could potentially begin production of copper and cobalt within the next six months. Arc is also presently in the process of building a new management team at Zamsort who will be undertaking a full assessment of current operations including historical exploration data as well as optimising the plant. At present, it is estimated that Zamsort has approximately 10,000 tonnes of screened ore grading 2.08% Cu and 0.29% Co stockpiled on site and ready to be processed through the CSD plant.
Acquisition of Zamsort / Terra Metals shares
In addition to the receipt of 102,083,333 Consideration Shares by Terra Metals in exchange for 35% of its shares in Zamsort, Terra Metals has the right to nominate one non-executive director to the board of
Placing
The company announces that it has raised
The Placing, which was oversubscribed, was supported by both new and existing investors and a number of the Company's Directors and management, who also participated in the Placing.
Mr
Mr
Mr
Application has been made for the 102,083,333 Consideration Shares and 104,166,667 Placing Shares to be admitted to trading on the AIM market of the
Total Voting Rights
Following the issue of the Consideration Shares and Placing Shares, the total issued share capital of the Company consists of 539,040,600 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 539,040,600 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
Notes:
1) Terra Metals has signed a lock-in agreement for a period of 12 months from date of receipt of
2) Zamsort has recently completed an audit of its 2017 financial year by PKF,
3)
4) Zamsort has settled in full two historic cases in respect of a
Figure 1. Location Map
http://www.rns-pdf.londonstockexchange.com/rns/0422O_-2018-5-14.pdf
Figure 2. CDS Plant
http://www.rns-pdf.londonstockexchange.com/rns/0422O_1-2018-5-14.pdf
**ENDS**
Contacts
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+44 (0) 20 3874 8664 |
SP Angel (Nominated Adviser & Broker) |
+44 (0) 20 3470 0470
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Forward-looking Statements
This news release contains forward-looking statements that are based on the Company's current expectations and estimates. Forward-looking statements are frequently characterised by words such as 'plan', 'expect', 'project', 'intend', 'believe', 'anticipate', 'estimate', 'suggest', 'indicate' and other similar words or statements that certain events or conditions 'may' or 'will' occur. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that could cause actual events or results to differ materially from estimated or anticipated events or results implied or expressed in such forward-looking statements. Such factors include, among others: the actual results of current exploration activities; conclusions of economic evaluations; changes in project parameters as plans continue to be refined; possible variations in ore grade or recovery rates; accidents, labour disputes and other risks of the mining industry; delays in obtaining governmental approvals or financing; and fluctuations in metal prices. There may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. Any forward-looking statement speaks only as of the date on which it is made and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results or otherwise. Forward-looking statements are not guarantees of future performance and accordingly undue reliance should not be put on such statements due to the inherent uncertainty therein.
Notes to the Editors
· 99% interest in
· A 14% interest in
· 100% ownership of the Kremnica Mining Licence Area in
· A 18.48% interest in
For more information visit www.arcminerals.com
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.
The notifications below, made in accordance with the requirements of the EU Market Abuse Regulation, provide further detail on the director's share dealing.
NOTIFICATION AND PUBLIC DISCLOSURE OF TRANSACTIONS BY PERSONS DISCHARGING MANAGERIAL RESPONSIBILITIES AND PERSONS CLOSELY ASSOCIATED WITH THEM
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Details of the person discharging managerial responsibilities/person closely associated |
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1. 2. 3. |
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Reason for the notification |
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Position/status: |
1. Executive Chairman 2. Non-Executive Director 3. Chief Operating Officer |
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Initial notification/Amendment: |
Initial notification |
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Details of the issuer, emission allowance market participant, auction platform, auctioneer or auction monitor |
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LEI: |
213800XHFJVCC9GP2G75 |
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4a. |
Details of the transaction(s): section to be repeated for (i) each type of instrument; (ii) each type of transaction; (iii) each date; and (iv) each place where transactions have been conducted |
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Description of the financial instrument, type of instrument: Identification code: |
Ordinary shares of no par value VGG045791016 |
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Nature of the transaction: |
Purchase of shares |
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Price(s) and volume(s): |
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Aggregated information: Aggregated volume: Price: |
Single transaction as in 4 c) above
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Date of the transaction: |
2018-05-14
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Place of the transaction: |
Off-market |
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