REG - Arc Minerals Limited - Settlement of All Legal Cases

ARC MineralsAnnouncement

18/02/2022 18:15

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RNS Number : 1962C  Arc Minerals Limited  18 February 2022

18 February 2022

Arc Minerals Ltd

('Arc' or the 'Company')

Settlement of All Legal Cases

 

The Company is pleased to announce that the parties to the ongoing legal cases
in Zambia and in the UK have come to an agreement to settle various disputed
matters and for all legal proceedings to be permanently dropped (the
"Settlement Agreement"). The Settlement Agreement will now be submitted to
Zambian courts to effect a Consent Judgement which will have the force of law.

 

Nick von Schirnding, Executive Chairman of Arc, commented:

"I am very pleased to have executed the Settlement Agreement which allows us
to move on from what has been a lengthy period of uncertainty. The settlement
is in the best interests of the Company and its shareholders and allows us to
focus on operations and also accelerate our discussions with interested major
mining companies."

 

In return for the claimant parties, being Terra Metals Limited, Zambia Mineral
Exchange Corporation Limited and certain of their related parties((i)),
relinquishing all claims against Zamsort Limited ("Zamsort") or any other
company in the Arc group, present or contingent, and in full and final
settlement of all claims, and conditional upon consent orders being issued by
the relevant courts in Zambia and the UK in formal conclusion of all matters,
the Company has agreed to transfer to the claimant parties the entire issued
share capital of Zamsort held by the Arc group (being 66% of the issued share
capital of Zamsort), which owns the pilot plant. The group will also consent
to the claimant parties applying for the 8 square kilometre small mining and
small exploration license areas that were previously in existence at Zamsort
prior to Arc's involvement and which currently form part of Handa's licence
19906-HQ-LEL. Arc's share of the book value of the pilot plant was
approximately USD 1.98M at 31 Dec 2020 and it had been kept on care and
maintenance since 2020. In addition, the settlement includes share options to
be issued by the Company to the claimant parties to the value of USD 200,000
(using a Black-Scholes valuation model) and a modest cash component at a cost
to the Company of £73,000 payable within 14 days of execution of the consent
orders and £48,000 payable 9 months later. The Company will make a further
announcement concerning details of the share options once the consent orders
have been obtained.

 

The disposal of Zamsort will not affect the Directors plans for the continuing
exploration and development of the Company's projects in Zambia.

 

((i) including Mumena Mushinge, Brian Chisala and Katambi Bulawayo)

 

Market Abuse Regulation (MAR) Disclosure

This announcement contains inside information for the purposes of Article 7 of
the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law
by virtue of the European Union (Withdrawal) Act 2018 ("MAR"), and is
disclosed in accordance with the Company's obligations under Article 17 of
MAR.

 

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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