Thursday saw Arc Minerals (LSE:ARCM) announce the sale of one of its non-core assets to help support the accelerated development of its Zamsort copper-cobalt project. The resources firm sat at 3.1p after offloading its 18.5pc position in Andiamo Exploration for $250,000. The sale to a private business called Emerald will close next Monday.
Executive chairman Nick von Schirnding said the proceeds would go towards the company’s current exploration programme at Zamsort. Arc owns a 66pc equity interest in Zamsort, together with a convertible loan that converts into an additional 5pc position.
The firm is planning to accelerate its drilling of Cheyeza West and Lumbeta- two large new targets identified at Zamsort earlier this month. Lumbeta stretches for 11km and is associated with the crest of a fold. Arc has previously said that these hinge points in a folded environment could act as mineralisation traps and form high-grade deposits.
Cheyeza West, meanwhile, is a core 3km by 3km anomaly outlined by very high copper values in the soils enclosed by the wider 10km x 8km anomaly. The prospect is roughly ten times the size of Kalaba, currently Arc’s most developed prospect at Zamsort. With this in mind, Arc has previously described the candidate as a potential game-changer that has exceeded all of its expectations.
Alongside the proceeds from the sale of its stake in Andiamo, Arc carried out a private £2.2m placement over the weekend at 3p a share to support the accelerated drilling at the two prospects. This was supported heavily by the organisation’s board and two large family offices. Elsewhere, Arc is continuing to complete an 11,000m diamond and reverse circulation drilling programme at Kalaba as well as completing a commercial-scale demonstration plant.
In Thursday’s update, von Schirnding said the sale of Andiamo represents a ‘step forward’ in Arc’s plans to sell off its non-core assets. ‘We are also progressing discussions with a number of interested third parties in respect of our other non-core assets,’ he added. These assets include the business’s wholly-owned Šturec project in Slovakia, which hosts the 1.3Moz AuEq PFS stage Ṧturec Gold Project.
Elsewhere on Thursday, Arc announced that Zaco Investments has now acquired a 464.69km2 area of Zamsort Mining that it is not being prioritised or developed in the near-term. The sale, first announced in Arc’s December results, has arisen to allow the business to comply with Zambian mining regulations.
Arc is Zaco’s largest shareholder with a 42.5pc interest, and von Schirnding has been appointed the vehicle’s chairman. Arc said the company is now evaluating a range of options including bringing in a joint venture partner to develop the license area.
Author: Daniel Flynn
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