Arc Minerals Limited (AIM:ARCM, OTC:ACMNF, FRA:DFYA) told investors it has reached a comprehensive settlement in Zambia, drawing a line under all outstanding litigation affecting the copper explorer in the country.
The AIM-listed company said the agreement terminates eight sets of ongoing proceedings across multiple Zambian courts and tribunals, with consent judgments now being filed with the relevant courts.
In London, Arc shares moved up sharply in early trade, and after 9:00 am were 6.4% higher, changing hands at 0.43p (having seen as high as 0.5p at one point).
Today's statement noted that the settlement was agreed between Arc, Handa Resources, Unico Minerals and Kopara Investments on one side, and Zambia Mineral Exchange Corporation, Lunda Resources and Mumena Mushinge on the other. Under the deal, the parties agreed to discontinue existing claims and counterclaims on a full and final basis, without any admission of liability.
A deferred US$200,000 payment may come due subject to the delivery of a JORC-compliant measured mineral resource of at least 30mln tonnes at a 1.5% copper cut-off on Lunda’s Licence 41777-HQ-LEL by 31 December 2031.
"This settlement allows us to focus entirely on advancing our exploration and development activities across Botswana and Zambia. Arc's Kabompo West project represents one of the largest exploration footprints in the Domes region of Zambia," said Arc CEO Rémy Welschinger.