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Arc Minerals Limited - Acquisition of further interest in Zaco

RNS Number : 2799N
Arc Minerals Limited
19 May 2020
 

19 May 2020

 

Arc Minerals Ltd

('Arc' or the 'Company')

Acquisition of further interest in Zaco

 

Arc Minerals Limited, the Zambian focussed copper exploration and development company, is pleased to announce that it has acquired a further 20% interest in the issued share capital of Zaco Investments Limited ("Zaco") (the "Acquisition"), increasing Arc's interest in Zaco from 52.5% to 72.5%. The remaining interest will be held by Kopara Investments, Arc's partner at Zamsort.

 

This additional interest in Zaco has been acquired from Mr. Mumena Mushinge, a non-executive director of Arc Minerals and founder of Zamsort, in an all-equity deal for 10 million new ordinary shares of no par value in the Company ("Ordinary Shares"). Upon admission of the new Ordinary Shares, Mr. Mumena's beneficial interest in the ordinary share capital of Arc Minerals will consist of 67,069,129 Ordinary Shares, representing approximately 6.87% of the enlarged Ordinary Share capital of the Company.


Mr. Mumena Mushinge is a director of the Company and is therefore regarded as related party as defined by the AIM Rules for Companies. Therefore, Mr. Mumena Mushinge withheld his vote during the Company's board meeting approving the Acquisition.

 

About Zaco

The Zaco exploration license is significant in size, covering 465km² of highly prospective area immediately adjacent to the 407km² Zamsort exploration license and holds a number of significant exploration targets including the Fwiji, West Lunga, Nyambwezu, Muswema South as well as the Chihindi targets.

Following the sale of his interest in Zaco, Mumena Mushinge will step down from the board of Zaco, however, Mr. Nick von Schirnding, Chairman of Arc, will remain as the Zaco Chairman with Mr. Vassillios Carellas, COO of Arc who remains CEO of Zaco.

Nick von Schirnding, Executive Chairman of Arc stated:

 

"In line with our stated strategy, we are pleased to further consolidate our interest in Zaco and we regard this significantly increased interest as an important strategic step for Arc Minerals.

 

We are now fully funded for our exploration programme for both the Zamsort and Zaco licenses and we are excited to start drilling the various targets.  At Zaco, we will initially focus our drilling programme at the Fwiji target."  

 

Application will be made for the new Ordinary Shares to be admitted to trading on the AIM market of the London Stock Exchange ('Admission'). The Shares will rank pari passu in all respects with the existing shares. Admission is expected to occur on or around 26 May 2020. 

 

Total Voting Rights

 

Following the issue of the Shares to Mr. Mumena Mushinge, as well as the Admission of new Ordinary Shares announced by the Company on 15 May 2020, the total issued share capital of the Company will consist of 976,890,274 Ordinary Shares with voting rights. The Company does not hold any Ordinary Shares in treasury. Therefore, the total number of voting rights in the Company is 976,890,274 and this figure may be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change in their interest in, the share capital of the Company. 

**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.

1.     

Details of the person discharging managerial responsibilities/person closely associated

a)

Name:

Mumena Mushinge

 

2.     

Reason for the notification

a)

Position/status:

Non-Executive Director

 

b)

Initial notification/Amendment:

Initial notification

3.     

Details of the issuer, emission allowance market participant, auction platform, auctioneer or auction monitor

a)

Name:

Arc Minerals Limited

b)

LEI:

213800XHFJVCC9GP2G75

4.     

Details of the transaction(s): section to be repeated for (i) each type of instrument; (ii) each type of transaction; (iii) each date; and (iv) each place where transactions have been conducted

a)

Description of the financial instrument, type of instrument:

Identification code:

Ordinary shares of no par value   

 

VGG045791016

b)

Nature of the transaction:

Grant of ordinary shares

c)

Price(s) and volume(s):

 

Price(s)

Volume(s)

1.80 pence

10,000,000

 

d)

Aggregated information:

Aggregated volume:

Price:

Single transactions as in 4 c) above

Price(s)

Volume(s)

1.80 pence

10,000,000

 

e)

Date of the transaction:

2020-18-05

f)

Place of the transaction:

Outside a trading venue

 

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.

Follow us on twitter @ArcMinerals

 

Notes to the Editors

Arc Minerals is a dynamic AIM listed exploration and mine development company focused on the discovery and development of large-scale copper and copper cobalt deposits in the Western part of the Zambian Copperbelt.    

ARC Minerals current holdings include:

   A 66% equity interest in Zamsort Limited ("Zamsort"), a private company focused on a prospective copper licence in the Zambia Copperbelt.

   A 72.5% equity interest in Zaco Investment Limited ("Zaco"), a private company focussed on a prospective copper and cobalt license adjacent to Zamsort.

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: 2.3

Market: AIM
Market Cap: £22.24 m
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