Cessation Of Anglo American / Arc Joint Venture
Arc Minerals announced the termination of its joint venture agreement with Anglo American regarding Zambian mining tenements, effective immediately. The decision, reached by mutual agreement, follows a period without drilling activity in 2025. As part of the termination, Anglo American will surrender its shares in Handa Resources Limited, the joint venture company, and Arc Minerals will resume control of Handa. Approximately US$800,000 will remain in Handa's bank account, reverting to Arc's control. Arc Minerals does not anticipate needing to raise equity to support operations, considering existing cash and the Handa balance.
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Arc Minerals (LSE: ARCM), an exploration company focused on developing Tier 1 copper deposits, announces that the joint venture agreement in respect of the Zambian mining tenements between its subsidiary Unico Minerals Limited1 with a subsidiary of Anglo American plc ("Anglo American") has by mutual agreement been terminated and Anglo American has accordingly withdrawn from the joint venture and surrendered its interests, which were held through the joint venture company, Handa Resources Limited ("Handa"). This follows a protracted period of no drilling activity during 2025. It has been further agreed that circa US$800,000 will be left in Handa's bank account and Arc will resume control of that company, with Anglo American surrending its shares in Handa.
Nick von Schirnding, executive chairman of Arc said "While we are sorry to part company with Anglo American, I am pleased that we revert to a controlling position in what is widely regarded as one of the most prospective copper tenements in Africa with only a fraction having been drilled to date. We will explore our options for these assets which may include a new joint venture partner.
"We remain resolutely determined to complete the court processes underway in Zambia to deal with the improprieties carried out by an individual intent on holding the Company to ransom which we naturally will not countenance."
Given existing cash resources and the balance of cash being left in Handa, the Directors do not anticipate any requirement to undertake an equity raise in the foreseeable future to support existing operations.
Arc Minerals is solely and entirely responsible for the contents hereof. Neither Anglo American nor any other person, accepts responsibility for the adequacy or accuracy of this news release.
[1] Arc Minerals 66% shareholding, with the balance held by Kopara Investments Ltd
Cleaned text: letterheads, contacts and legal notices removed. View the original announcement ↗ · Company filings. Not investment advice.