Arc Minerals Limited (AIM:ARCM) has finally closed a dispute that has dragged on since April 2022, agreeing a binding cash-only deal with Avanti Gold Corporation and Regency Mining Ltd to recover part or all of the $1.25 million it is owed.
The sum arose when Regency bought Casa Mining, owner of a 73.5% stake in the Misisi gold project in the Democratic Republic of the Congo, and promised Arc newly issued Avanti shares in lieu of cash, a commitment that was never fulfilled.
Under the new binding deal, Avanti and Regency must pay a discounted amount of $562,500 if they settle in full by 31 August, with the discount narrowing to $625,000 for payment by 31 October and $750,000 by 31 December 2025.
If the debt remains unpaid after 31 December, the full $1.25 million falls due on 1 January 2026, and any outstanding balance will accrue compound interest at 2% per month.
Arc’s management says the funds will be deployed to bolster working capital as the company heads into 2026.
Chairman Nick von Schirnding said: "I am pleased that we have reached a binding agreement with Avanti and Regency after a lengthy period of constructive negotiations.
"Funds from the settlement will, in addition to existing and future contractual cash, further support the Company's cash position into 2026, in line with previous guidance."