Aim-listed Arc Minerals will sell its 99.43% interest in Casa Mining, which holds a 73.84% interest in the Akyanga gold deposit, in the Democratic Republic of Congo, to Canadian private equity group Century Capital Management for up to $9.8-million.
The purchase price includes an initial $1.8-million in cash, as well as a further $2.5-million in cash should Casa’s minerals resource estimate increase to six-million ounces during the five-year period after the transaction closes.
Should Casa’s resource increase to nine-million ounces during the period, it will be entitled to a further $2.5-million cash payment. A further $3-million is also payable to Arc if the resource increases to 12-million ounces.
The transaction, which remains subject to certain conditions precedent, is expected to close before January 10, 2020.
“This is a major strategic milestone for Arc. The transaction brings significant cash resources to Arc and, at the same time, removes ongoing operational expenditure. Crucially, it allows us to focus on our exciting Zambian copper development, where we are making excellent progress both on drilling and commercially developing our plant.
“As I have set out many times, we are clear on our vision in turning Arc into a focused copper play – this is a major step forward and we will continue all efforts to dispose of the remaining noncore gold interest, namely Šturec, in Slovakia,” Arc chairperson Nick von Schirnding commented on Wednesday.