Zambia – JV Subsidiary Legal Case

The Company advises that it has been informed by a subsidiary of Anglo American, its joint venture partner in Zambia, that a temporary injunction against sale and mining or exploration activities has been granted with respect to one of the licences held by Handa Resources Limited.

Arc Minerals has been informed that current drilling activities being undertaken by the joint venture are on licences that are not subject to the injunction and these activities are therefore unaffected and continue as planned.

The affected licence forms part of a successful Zambian court-approved Settlement Agreement as first announced on 18 February 2022. The directors of Arc believe this injunction is without merit and vexatious and based on unfounded historic claims against Handa by Zamsort. Arc has been informed that an application by Handa to set aside the injunction and to dismiss the case will be filed imminently. In addition, Arc Minerals notes that it has filed a case for breach of the Zambian Settlement Agreement referred to above seeking injunctive relief and damages.

Whilst the outcome of this matter can not be guaranteed, the directors of Arc Minerals are confident that the injunction will be lifted once the court has been provided with the full set of facts and history on the matter.

Further updates will be provided in due course.