Arc Minerals, a copper-focused exploration and development company in Zambia, is pleased to announce the acquisition of an additional 20% interest in Zaco Investments Limited. This acquisition increases Arc’s stake from 52.5% to 72.5%, solidifying its control of one of Zambia's most prospective copper and cobalt assets. The remaining 27.5% of Zaco will continue to be held by Kopara Investments, Arc's partner in Zamsort.
The 20% interest was acquired from Mumena Mushinge, a non-executive director of Arc Minerals and founder of Zamsort, through an all-equity deal. Arc issued 10 million new ordinary shares in exchange for the additional stake, further strengthening its position in the Zambian Copperbelt. Following the transaction, Mr. Mushinge’s beneficial interest in Arc Minerals amounts to 67,069,129 shares, representing 6.87% of the company’s enlarged ordinary share capital.
The Zaco exploration license, covering 465 km², is strategically located adjacent to the 407 km² Zamsort license. It encompasses multiple promising targets, including the Fwiji, West Lunga, Nyambwezu, Muswema South, and Chihindi targets, which present substantial exploration potential. Arc Minerals intends to prioritize drilling activities at the Fwiji target, which has already shown early signs of significant mineralization.
Nick von Schirnding, Executive Chairman of Arc Minerals, expressed confidence in the project’s potential:
“This acquisition aligns with our strategy to consolidate our position in Zambia’s Copperbelt. Increasing our stake in Zaco not only strengthens our portfolio but also provides us with greater flexibility and control as we move forward with our exploration programs. We remain excited about the significant potential of both Zaco and Zamsort, and we are fully funded to commence drilling across key targets."
Application for Admission
Arc Minerals will apply for the new ordinary shares to be admitted to trading on the AIM market of the London Stock Exchange. The shares will rank pari passu with existing shares, and admission is expected on or around 26 May 2020.
Total Voting Rights
Upon completion of this transaction and the previously announced issuance of shares, Arc’s total issued share capital will consist of 976,890,274 ordinary shares. This figure represents the total number of voting rights in the company, enabling shareholders to calculate their interest in Arc Minerals' share capital.
About Zaco
Zaco’s highly prospective license is part of Arc's broader strategic focus in the Zambian Copperbelt, an area renowned for its rich copper and cobalt deposits. The addition of key exploration targets such as Fwiji and West Lunga enhances Arc’s ability to unlock significant value through systematic exploration and development.
Source: Financial Times
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