Arc Minerals Ltd (LON:ARCM) has increased its ownership of Zamsort Limited to 61%, following the acquisition of an additional 6% interest from two separate shareholders of Zamsort and appointed a new drilling contractor.
The AIM-listed firm said it will issue 12mln new ordinary shares of no par value in the company 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.
Arc Minerals said the vendors shall be issued with a warrant over a total of 2.5mln new ordinary shares of no par value 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.
In addition, Arc Minerals also holds a convertible loan note in Zamsort which is convertible into an additional 5.34% interest in the share capital of Zamsort.
Arc Minerals has also 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 after.
Nick von Schirnding, executive chairman of Arc, said: “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.”