Business
Start of Drilling; increase of Zamsort ownership
Start of Drilling; increase of Zamsort ownership.
About this update from Arc Minerals Limited
[{"type":"text","content":"\n \nRNS Number : 2330U Arc Minerals Limited 11 July 2018 \n\nArc Minerals Ltd / Epic: ARCM / Market: AIM / Sector: Mining & Exploration\n \n \n11 July 2018\n \nStart of Drilling; increase of Zamsort ownership\n \n \nArc Minerals (\"Arc\" or the \"Company\") is pleased to announce that it has today commenced its 11,000-metre drilling programme at the Zamsort Copper Cobalt Project (\"Zamsort\").\n \nThe 11,000-metre drilling programme consists of 6,600m diamond drill and 4,400m RC drilling which is aiming to delineate a shallow oxide resource for the Commercial Scale Demonstration plant which is currently being optimised as well as to establish a maiden mineral resource estimate at Kalaba. \n \nIn addition, Arc has today acquired a further 5% stake in Zamsort (the \"Acquisition\") in a share exchange which will increase Arc's holding in Zamsort from 61% to 66%. This leaves one remaining 34% shareholder, Kopara Investments Limited (\"Kopara\") in place at Zamsort.\n \nFollowing on from this, Arc has today agreed with Kopara to fund all future expenditure at Zamsort pro-rata to their shareholdings. \n \nNick von Schirnding, Executive Chairman of Arc Minerals commented:\n\"This is a yet another step forward in consolidating our ownership in Zamsort and to increase Arc's exposure to this large and exciting copper-cobalt asset. I am also pleased to note that we have agreed a funding structure with our joint venture partners.\nWe look forward to a period of strong news flow as we report results from our drilling programme.\"\nIncrease of interest in Zamsort\nThe Company will issue 10,000,000 new ordinary shares of no par value in the Company (\"Consideration Shares\") to the Vendor as consideration for the Acquisition. The Vendor will also be issued with a warrant (\"Share Warrant\") over a total of 2,100,000 new ordinary shares of no par value (\"Ordinary Shares\") of the Company with an exercise price of 6 pence per Ordinary Share. This represents an approximate 42% premium over the closing mid-market price of 4.2 pence per Ordinary Share on 10 July 2018. The Share Warrant is exercisable from 11 July 2018 and expires on 11 July 2020. \nIn addition, Arc holds a convertible loan note in Zamsort which is convertible into an additiona...