Africa-focussed base metals junior explorer Arc Minerals and diversified miner Anglo American have agreed to extend an exclusivity agreement in terms of which the latter wants to buy up to a 70% interest in a joint venture (JV) holding Arc’s copper interests in Zambia's North Western province, to March 31.
Arc has substantially progressed negotiations with Anglo, including the terms and conditions of a JV agreement and associated definitive agreements, with both parties currently closing out remaining due diligence, technical and structural issues, which are expected to be concluded in the next few weeks.
Arc’s Zambian licence areas are located about 900 km from Lusaka, in Mwinilunga, and within the trending arm of the major geological structure known as the Lufilian Arc on the western flank of the Kabompo Dome.
The Copperbelt is home to all the major copper mines in Zambia and these licences represent one of the last dome-related areas in Zambia yet to be explored in any detail.
The short extension of the exclusivity period will enable the parties to attain final internal approvals and sign the definitive JV agreement and ancillary documents.
Arc executive chairperson Nick von Schirnding says he is pleased with the progressive reforms being undertaken by Zambia President Hakainde Hichilema’s administration and the Ministry of Mines.
“I look forward to moving swiftly to signing all the final agreements and to updating shareholders shortly,” he says.
To date, Arc has carried out 22 000 m of drilling, collected and analysed 75 000 soil samples, and flown 5 700 line kilometres of airborne geophysical surveys over all the areas under licence.