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Arc Minerals agrees option to sell Šturec project for US$8mln plus royalty

Arc said it was ramping up its strategy to exit gold projects in order to progress its copper interests in Zambia, having last week agreed a deal to sell its gold assets in Democratic Republic of Congo

Arc Minerals Limited -
Šturec is located in central Slovakia and has a mineral resource estimate of 1.36 million ounces of gold equivalent

Arc Minerals Ltd (LON:ARCM) has signed an US$8mln option agreement to sell its wholly-owned Šturec gold project in Slovakia to MetalsTech Limited (ASX:MTC), in a bid to exit gold interests.

The Africa-focused copper and cobalt explorer said in a statement on Tuesday that it will receive a non-refundable option fee of A$30,000, and once the option is exercised by MetalsTech, it will collect total cash proceeds of A$750,000, along with a royalty capped at 7mln ounces of gold.

READ: Arc Minerals to sell entire 99.43% interest in Casa Mining to Canadian private equity group for up to US$9.8mln

Two payments will be made, Arc said, namely A$450,000 within the first 10 business days of the sale, followed by the remainder within six months.

The option may be exercised by the Australian explorer at any time in the next 45 days, after which, if no sale is completed, the option will lapse.

MetalsTech will pay Arc a further A$2 royalty per additional ounce of gold, if the Šturec indicated and measured resource is found to exceed 1.5mln ounces of gold at a grade greater than 2.5 grammes per tonne.

Arc said it will use the proceeds of the disposal on exploration and development activities in Zambia and for general working capital purposes.

Last week, Arc also unveiled plans to sell its entire 99.43% interest in Casa Mining Limited in Democratic Republic of Congo to Canadian private equity group, Century Capital Management Ltd for a total consideration of up to US$9.8mln.

Nick von Schirnding, executive chairman of Arc, said: "We are delivering on our stated strategy of exiting our gold interests and this is an excellent outcome for Arc as we focus on developing our core copper assets in Zambia.”

Quick facts: Arc Minerals Limited

Price: 4.0288 GBX

Market: AIM
Market Cap: £39.51 m

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