Aim-listed Arc Minerals has increased its interest in Zamsort, which is developing a copper/cobalt project in north-west Zambia, to 55% following the acquisition of a 6% interest from Terra Metals.
The company will issue 17.5-million new ordinary shares, which are also subject to a hard lock-in period of 12 months, of no par value in Arc Minerals to complete the acquisition.
In addition, Arc holds a convertible loan note in Zamsort which is convertible into an additional 5.34% interest in the share capital of Zamsort.
Commenting on the critical step forward in consolidating its ownership in Zamsort to increase Arc’s exposure to this large copper/cobalt asset, Arc executive chairperson Nick von Schirnding says the announcement is a clear demonstration that the company is delivering rapidly on its stated strategy of developing two highly attractive projects of scale in Africa.
“We are very close to starting the planned drill programme at Zamsort and look forward to a period of strong news flow for shareholders, both from Zamsort and Casa," he added.
Drilling at Casa, which owns the Misisi gold project, in the DRC, has indicated the potential for a gold resource of more than two-million ounces.
Arc Minerals increased its interest in Casa Mining from 87.4% to 91.6% earlier this year.