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Arc Minerals Limited - Sale of Sturec Update

RNS Number : 3417C
Arc Minerals Limited
07 February 2020
 

7 February 2020

 

Arc Minerals Ltd

('Arc' or the 'Company')

Sale of Sturec Update

Arc Minerals ("Arc" or the "Company") is pleased to announce that following announcements made on 19 November 2019 and 30 December 2019, the Company has today entered into a binding Sale and Purchase Agreement ("SPA") with MetalsTech Limited ("MTC") in respect of the sale of its wholly-owned subsidiary, Ortac Resources (UK) Limited, which holds Arc's interest in the Šturec gold project ("Šturec" or the "Project") in Slovakia, an Australian listed mineral exploration company for a gross consideration of up to US$8m (the "Disposal"). Completion of the Disposal shall take place by no later than 14 February 2020 ("Completion Date"). 

 

First Payment and Second Payment

As was announced on 30 December 2020, Arc will receive two phased cash payments namely A$450,000 (less the A$30,000 option fee) on the Completion Date (the "First Payment"), followed by a second payment of A$300,000 (the "Second Payment") within six months of the Completion Date, bringing the total cash proceeds payable to Arc of A$750,000 (c. US$500,000). 

 

The Resource Upgrade Royalty

If, at any time in the period between 19 November 2021 and 19 November 2024, the Šturec JORC Indicated and Measured Resource exceeds 1.5 million ounces gold at a grade greater than 2.5g/t (inclusive of recoverable Ag equivalent), MTC will pay Arc a further A$2 royalty per additional ounce of gold . This royalty is capped at 7 million ounces of gold.

 

Any consideration due under the Resource Upgrade Royalty may be satisfied in either cash or by the issuance of ordinary shares in the capital of MTC.

 

Substantial transaction

Šturec is a large prospective gold exploration license. The Project is located in central Slovakia approximately 1.5km north east of the town of Kremnica and 17km west of central Slovakia's largest city, Banská Bystrica. The Project has a JORC (2004) compliant mineral Resource of 1.36 million ounces of gold equivalent. A Pre-Feasibility Study ("PFS") of the mining aspects of the Šturec Project was completed by SRK Consultants ("SRK"), a leading international engineering firm in April 2013. The sale of the Project constitutes a substantial transaction under AIM Rule 12.  As at 31 March 2019, the reported net book value of Ortac s.r.o and other subsidiaries in Slovakia, which own the Project was £6m and incurred a loss of £25,000 for the year ended 31 March 2019 (from discontinued activities). The net proceeds of the disposal will be applied to exploration and development activities in Zambia and for general working capital purposes.

 

Nick von Schirnding, executive chairman of Arc stated: "This represents a major step forward for Arc as we focus the portfolio around our core Zambian copper assets where we have one of the most exciting undeveloped copper projects.  I am very pleased with the commitment shown by MTC to take Šturec to the next stage of development and wish them well."

 

**ENDS**

Contacts

Arc Minerals Ltd

Nick von Schirnding (Chairman)

 

+44 (0) 20 7917 2942

 

SP Angel (Nominated Adviser & Broker)

Ewan Leggat / Soltan Tagiev

 

+44 (0) 20 3470 0470

 

 

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.

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

Arc Minerals is an AIM listed exploration and mine development company focused on a diversified portfolio of mining projects with interests in 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 t licence in the Zambia Copperbelt, together with a convertible loan to Zamsort which converts into approximately a five percent additional equity interest in Zamsort.

   A 52.5% equity interest in Zaco Limited ("Zaco"), a private company focussed on a prospective copper and cobalt license adjacent to Zamsort.

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 [email protected] or visit www.rns.com.
 
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