REG - Arc Minerals Limited - Result of Annual General Meeting

ARC MineralsAnnouncement

16/12/2021 13:05

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RNS Number : 9275V  Arc Minerals Limited  16 December 2021

16 December 2021

Arc Minerals Ltd

('Arc' or the 'Company')

Result of Annual General Meeting

The Company is pleased to announce that all of the resolutions that were put
to shareholders at the virtual Annual General Meeting held today were duly
passed.

 

Nick von Schirnding, Executive Chairman of Arc, provided the following update
to those in attendance at the virtual AGM:

 

"The Company's drilling activities centred on the Fwiji and Cheyeza East
targets which as announced would comprise of deeper holes to better understand
the stratigraphy and structure of the target areas.  Some of these holes
drilled went down to 500 metres in depth and as a result the drilling took
longer than in previous years given the length of time to drill to this depth.
The first hole drilled at Cheyeza East intersected massive and disseminated
copper sulphide mineralisation and represented the most significant copper
sulphide discovery since Arc's drilling campaign started at Cheyeza East and
provides further support for the discovery of a sulphide copper occurrence at
this target. Other holes drilled also intersected sulphide mineralisation, but
the drilling campaign and certain operations have been delayed by the Company
whilst certain legal cases were dealt with, such as the court ruling dated 8
November 2021 setting aside the ex-parte order in favour of Zamsort and Handa.
Regarding the Cheyeza East oxide target, extensive test work has been
underway, and the Company is assessing proprietary technology that has
reportedly achieved high recovery levels and is being further assessed for its
commercial viability.

Arc's high resolution airborne geophysical survey was completed in November,
the raw data for which has been sent to the Company's consultant to be
processed and interpreted, which will further refine the Company's targeting
before restarting drilling, which will include not only Cheyeza East but also
Muswema our No.1 target.

Arc is also pleased to confirm that it is in discussions with two major mining
companies regarding potential commercial transactions. One of these
discussions is at an advanced stage and, whilst the Board is optimistic about
the potential for a transaction, there can be no guarantee that any
transaction will be completed. The Company also has a clear strategy in place
for the next series of drilling campaigns irrespective of whether a
transaction with a major eventuates.

As mentioned above, the Company is currently involved in two sets of spurious
legal cases in Zambia brought by a former founder shareholder in Zamsort Ltd
("Zamsort") and former Director of Arc, Mr Mumena Mushinge. The first set
relates to a debt claim made by Terra Metals Ltd ("Terra Metals"), a company
controlled by Mr Mushinge, against Zamsort, a subsidiary of the Company
purchased from Terra Metals in 2018, in connection with a $5.8m capital raise
by Zamsort in 2015 (prior to Arc becoming a shareholder of Zamsort). Arc
considers that these cases are without any merit, as originally notified on 10
March 2021, and has launched a breach of warranties case in the UK High Court
as well as defending the cases brought in Zambia. The second set of cases
relates to the termination of a plant lease agreement by Zamsort in regard to
Zambia Mineral Exchange Corporation Limited, a company also owned by Mr
Mushinge, which has disputed the termination. The termination by Zamsort of
the lease was in line with the provisions of the lease agreement.

Partly due to the impact of Covid as well as recent Zambian elections, there
have been delays in the judicial system to hear the legal cases, which are
likely to be heard and decided on in the first half of 2022. Attempts are
underway to come to an agreement between the parties to avoid wasting more
time and until such time the Company will continue to rigorously defend its
rights. Our case is extremely strong and we have full confidence in the
Zambian judicial system.

In conclusion, while the year has been a challenging one with time and effort
being spent on two sets of legal cases - our fundamentals are strong. We have
one of the most attractive exploration grounds in southern / central Africa
and our drilling has confirmed significant mineralisation. While frustrating
that our drilling efforts were delayed, we look forward to continuing our
drilling at Cheyeza East and at Muswema. Our financial position remains strong
with cash resources of US$3m and an expected Casa Mining settlement of US$1.5m
which remains subject to the completion of a CA$5m fundraising by Rackla
Metals Inc, approval by the TSX Venture Exchange and other customary
conditions, as notified on 5 May 2021. While we'd very much like to elaborate
on the status of our discussions with two major mining companies, as well as
the status of the legal cases in Zambia, we are precluded from disclosing
details at this time due to regulatory and legal considerations. We look
forward to updating shareholders in due course on new developments in the
Company through 2022."

 

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.

 

Contacts

 Arc Minerals Ltd                                 +44 (0) 20 7917 2942

 Nick von Schirnding (Executive Chairman)

 SP Angel (Nominated Adviser & Joint Broker)      +44 (0) 20 3470 0470

 Ewan Leggat / Adam Cowl

 WH Ireland Ltd (Joint Broker)                    +44 (0) 20 7220 1666

 Harry Ansell / Katy Mitchell

 

 

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