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Arc Minerals Limited - MTC exercises Sturec option

RNS Number : 2918Y
Arc Minerals Limited
30 December 2019
 

30 December 2019

 

Arc Minerals Ltd

('Arc' or the 'Company')

MTC exercises Sturec option

 

Arc Minerals ("Arc" or the "Company") is pleased to announce that following the announcement released on 19 November 2019, the Company has today received confirmation that MetalsTech Limited ("MTC"), an Australian listed mineral exploration company has exercised its option to acquire Arc's interest in the Šturec gold project ("Šturec" or the "Project") in Slovakia for a gross consideration of up to US$8m.   Under the terms of the option agreement a proposed completion date will not be more than 45 days following the date of the exercise notice. 

 

First Payment and Second Payment

Under the option agreement, Arc will receive two phased cash payments. The first of A$450,000 (less the option fee of A$30,000 which was paid on entering into binding term sheet) within 10 business days of a formal SPA being executed (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, within 2 years of the disposal, 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 such form of consideration or instrument acceptable to MTC, in its sole discretion (including, but not limited to cash or shares in MTC).

 

**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 Ltd is an AIM listed exploration and mine development company focused on a diversified portfolio of mining projects with interests in Slovakia, Eritrea, the Democratic Republic of the Congo and Zambia

Arc Minerals current holdings include:

   A 99.43% interest in Casa Mining Limited, a private company that has a 73.84% 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 and cobalt 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 focused on a prospective copper and cobalt licence in the Zambia Copperbelt.

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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Quick facts: Arc Minerals Limited

Price: 1.475

Market: AIM
Market Cap: £10.88 m
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