Business
Sale of Casa Mining
Sale of Casa Mining.
About this update from Arc Minerals Limited
[{"type":"text","content":"\n \n \n RNS Number : 6307G\n Arc Minerals Limited\n 18 March 2020\n \n \n \n \n 18 March 2020\n \n \n \n \n \n Arc Minerals Ltd\n \n \n ('Arc' or 'Arc Minerals' or the 'Company')\n \n \n Sale of Casa Mining\n \n \n \n \n \n \n \n \n Arc Minerals is pleased to announce that it has today entered into a binding Sale and Purchase Agreement to sell Arc's entire 99.43% interest in Casa Mining Limited (\"Casa\") to Golden Square Equity Partners Limited (\"Golden Square\" or the \"Purchaser\") for a consideration payable of up to $US50m. The transaction will close on 19 March 2020 (the \"Completion Date\"). An amount of US$5m of consideration will be paid to Arc on the Completion Date in the form of a loan note which will mature on 19 March 2021 (the \"Maturity Date\"). In the event that the share capital of Casa is acquired by a publicly traded company, the Purchaser may, at its option, discharge the US$5m liability by delivering shares of the public company with a market value of US$5m to Arc. \n \n \n \n \n \n In addition, the Purchaser has a binding obligation to enter into a royalty payment agreement with Arc Minerals of up to US$45m within 20 Business Days of the transaction closing on 19 March 2020, based on potential gold production of the projects and interests that are held by Casa as at the Completion Date (\"Royalty\"). \n \n \n \n \n \n The Purchaser also assumes all existing liabilities pertaining to Casa (£1.95m as at 30 September 2019), capped at US$3m.\n \n \n \n \n \n \n Arc has ensured that it has security over 100% of the Casa shares being sold in the event of non-payment of the loan note. While the Purchaser has provided certain documentation to Arc in respect of underlying investments there can be no guarantee that the loan note will be repaid. \n \n \n \n \n \n The payment of any Royalty will depend upon Casa becoming a gold producer and this in turn will depend upon Casa raising significant amounts of additional funding, the successful completion of studies and the granting of the required permits. There can be no guarantee that any Royalty payments will flow to Arc or the timing of such payments.\n \n \n \n \n \n \n \n \n Substantial Transaction\n \n \n Casa is a private company which owns a 73.84% interes...