Arc Minerals announced a further increase in its ownership of Zamsort to 61% following the acquisition of an additional 6% interest from two separate shareholders of Zamsort.
Arc Minerals will issue 12 000 000 new ordinary shares of no par value in the company to the vendors for the acquisition of the additional 6% interest in Zamsort.
These shares are subject to a hard lock-in period of 12 months.
In addition, the vendors shall be issued with a warrant over a total of 2 520 000 new shares of no par value of Arc Minerals with an exercise price of six pence per share.
This represents an approximate 40% premium over the closing mid-market price of 4.2 pence per share on 15 June 2018.
The share warrant is exercisable from 18 June 2018 and expires on 18 June 2020.
Arc Minerals also holds a convertible loan note in Zamsort which is convertible into an additional 5.34% interest in the share capital of Zamsort.
Appointment of drilling contractor
Arc Minerals has appointed a Zambian based drilling contractor with significant experience in the Zambian Copperbelt.
The first of three drill rigs is due to arrive on site this week and the remaining two drill rigs are expected to arrive shortly thereafter.
The company will provide a further update on the drilling programme in the near future.
“We are continuing to follow through on our promise to rapidly deliver value for shareholders at the Zamsort copper-cobalt project both at a corporate level and on the ground,” comments Arc Minerals executive chairman, Nick von Schirnding.
“The acquisition of this additional stake in Zamsort takes Arc’s total ownership in Zamsort to 61% and it is pleasing to see the rapid mobilisation of drilling rigs on site.
“A comprehensive drilling programme at Zamsort is due to begin imminently and we are extremely excited at the prospect of unlocking the significant value which we believe to be inherent within this highly sought after Zambian copper-cobalt asset.
“We look forward to providing further updates to the market in the near-term on our continued progress with the drilling programme at Zamsort as well as the Casa gold project,” he concludes.