REG - Arc Minerals Limited - Zambia Legal Update

ARC MineralsAnnouncement

21/07/2025 14:45

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RNS Number : 9185R  Arc Minerals Limited  21 July 2025

21 July 2025

 

The information contained within this announcement is deemed by the Company to
constitute inside information as stipulated under the Market Abuse Regulations
(EU) No. 596/2014 (MAR) as in force in the United Kingdom pursuant to the
European Union (Withdrawal) Act 2018. Upon the publication of this
announcement via Regulatory Information Service (RIS), this inside information
will be in the public domain.

 

Arc Minerals Ltd

('Arc Minerals', 'Arc', or the 'Company')

Zambia Legal Update

Arc Minerals (LSE:ARCM) provides the following update on the ongoing legal
proceedings in Zambia.

As previously announced on 16 January 2025, Arc Minerals had secured a
wide-ranging and comprehensive ex parte interim injunction restraining Mumena
Mushinge ("MM") and Zambia Mineral Exchange Corporation Limited ("ZAMEX") by
themselves, servants, agents or whomsoever, howsoever described, from
interfering with the affairs of Arc or any of its related parties or with any
interests in existing or future licences or applications, until the Company's
underlying claim for breach and damages can be heard inter parties (the
"Injunction").

The comprehensive Zambian Settlement Agreement (as announced on 18 February
2022) and Consent Judgment (as announced on 16 March 2022) already prohibited
any interference in Arc's affairs and the repeated violation by MM, ZAMEX
and/or their related parties formed the premise of the Injunction case and the
wider breach claim for damages before Judge Mwanabo in the High Court of
Zambia as set out in the Company's announcement on 16 January 2025.

The inter partes hearing of the injunction application has now been scheduled
for 10 September 2025, when the Company will have the opportunity to present
all relevant facts and circumstances with the aim to secure ongoing injunctive
relief after which the case can then proceed to the breach aspect of Arc's
claim against MM and ZAMEX.

Separately, Arc has now been notified that ZAMEX unilaterally obtained from a
court in Kitwe an ex parte order appointing a provisional receiver over Handa
Resources Limited ("Handa"), the JV company, without notice to Arc nor its
joint venture partner or their respective legal representatives, (the "Kitwe
Order") making claims that could impinge on the Company's interest in the
Handa licences if unresolved.

Upon review of the documents, the Company's lawyers have advised that
impropriety is evident both in the supported documents provided in ZAMEX's
application for the ex parte Kitwe Order as well as in the process followed.
Arc Management, having taken informed legal advice, regards this as a
procedurally improper and deliberate attempt to disrupt judicial process in
the Injunction Case and to generate confusion.

The Company notes that certain documents relating to the ex parte Kitwe Order
have been circulated via online forums to paint a selective picture and
generate confusion of the status of the legal cases, presumably to provoke
market speculation and unwarranted concern. The Company can confirm, having
made the necessary enquiries, that there is no legitimate basis for Handa to
have been placed in receivership and that the necessary steps have already
been taken to set the Kitwe Order aside.

The Directors believe that the ex parte Kitwe Order obtained by ZAMEX is a
clear act of interference in Arc's affairs and the affairs of the Company's
associates, which is prohibited under the Injunction and the Zambian
Settlement Agreement. Similarly, it is an attempt to disrupt and litigate two
separate ongoing cases in the High Court of Zambia. Arc has submitted
applications to both of the High Court judges for leave to commence contempt
of court proceedings against ZAMEX and its directors, personally.

The Board remains fully confident that these vexatious attempts will
ultimately fail and reiterates that the Company's licences, joint venture
interests, and operations remain fully protected under the Injunction. Further
updates will follow in due course.

 

The Directors of Arc are solely and entirely responsible for the content of
this announcement. Neither Anglo American nor any other person, accepts
responsibility for the adequacy or accuracy of this news release.

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.

**ENDS**

For further information, contact:

 Arc Minerals
 Ltd

                                                                                                                               info@arcminerals.com
 Nick von Schirnding (Executive Chairman)

 Zeus Capital Ltd (Nominated Adviser & Joint Broker)                                                                             Tel: +44 (0) 20 3829 5000

 Katy Mitchell/Harry Ansell

 Shard Capital Partners LLP (Joint Broker)                                                                                       Tel: +44 (0) 20 7186 9952

 Damon Heath

 

For more information, visit www.arcminerals.com (http://www.arcminerals.com) .

 

 

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