REG - Arc Minerals Limited - Zambia Licence Update

ARC MineralsAnnouncement

15/01/2025 12:30

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RNS Number : 4610T  Arc Minerals Limited  15 January 2025

15 January 2025, 12:25 UTC

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' or the 'Company')

Zambia Licence Update

 

Arc Minerals (LSE: ARCM), an exploration company forging partnerships to
discover and develop Tier 1 copper deposits, is pleased to provide an update
on the three large scale mining license applications, as announced on 17 June
2024 and 5 November 2024, as part of its Joint Venture with a subsidiary of
Anglo American in Zambia.

 

The Company is pleased to confirm that Handa Resources Limited, the JV Company
with Anglo American, has received formal notification from The Zambian
Ministry of Mines and Mineral Development that the application for Large Scale
Mining License 33404-HQ-LML has been approved.

 

Further, as announced on 5 November 2024, the Company notes that the other two
Large Scale Mining License Applications 33402-HQ-LML and 33403-HQ-LML now
reflects as reinstated on the Zambian Mining Cadastre Portal.

 

Nick von Schirnding, Executive Chairman of Arc Minerals, commented:

"This is an excellent outcome in resolving and approving the outstanding
licence matters. I would like to thank officials at the Ministry of Mines and
Mineral Development and the Mining Cadastre for their ongoing support.

 

We're in an envious position holding a significant licence in one of the most
prospective areas for copper, globally and I look forward to reporting on both
recent and future drilling plans and on results as they become available."

 

 

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.

 

For further information contact:

 Arc Minerals                                                                                                                    info@arcminerals.com (mailto:info@arcminerals.com)
 Ltd

 Nick von Schirnding (Executive Chairman)

 Zeus (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/)
.

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.

Background on the Anglo American Joint Venture

 

Arc Minerals has entered into a Joint Venture Agreement with Anglo American on
its Zambian Copper Project (ZPC) comprising a number of licenses covering
circa 870km(2) ha in the North Western Province, in the Domes region of the
Zambian Copperbelt near world-class mines such as First Quantum Minerals'
Sentinel and Kansanshi copper mines and Barrick's Lumwana mine.

 

The license areas are located approximately 900 km from Lusaka, in Mwinilunga,
North Western Province, and is well within the trending arm of the major
geological structure known as the Lufilian Arc (Copperbelt), on the western
flank of the Kabompo Dome.

 

The Copperbelt is home to all the major copper mines in Zambia and these
licenses represent one of the last dome-related areas in Zambia yet to be
explored in any detail.

 

Under the agreement, Anglo American can an earn-in on the ZCP by making a
number of project expenditures and assume operator ship of the project. The
details of the agreement are set out below:

· Phase 1 - Anglo will pay $14.5M in staged cash payments to Unico Minerals
Ltd (67% owned by Arc) and invest up to $24m in exploration expenditures
(total $38.5M) within three years and 180 days of the signing of the Agreement
(RNS 20.04.23) to secure a 51% interest in ZCP.

· Phase 2 - Anglo may elect to increase its interest in the ZCP to 60% by
investing a further $20M (total $58.5M) within two years of the completion of
Phase 1.

· Phase 3 - Anglo may elect to increase its interest in the ZCP to 70% by
investing a further $30M (total $88.5M) within two years of the completion of
Phase 2.

 

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