London-listed Arc Minerals has signed a binding deal to acquire the Chingola copper project in Zambia. The acquisition was made through its fully-owned subsidiary, Foreland Minerals.
The Chingola copper project lies in Zambia’s Copperbelt region. Arc is buying it from Brxton Construction after 18 months of pursuit.
Arc will pay an initial $50,000 for the project. More payments will follow based on exploration progress and regulatory approvals.
Chairperson Nick von Schirnding said, “The acquisition of the Chingola project is another important step in Arc’s strategy to expand its presence in the Zambian Copperbelt. We have pursued this asset for the past 18 months in a highly competitive environment.”
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Project Located Near Major Operating Mines
The project sits in the north-eastern Copperbelt. It is close to Vedanta Resources’ Nchanga mine and Moxico Resources’ Mimbula mine.
Schirnding added, “The project is located in the north-eastern part of the Copperbelt and that it is very attractive, with historically higher grades than in the north-west of the Copperbelt.”
The licence covers 311 km². It is surrounded by active mining operations, making it a promising site for exploration.
Arc plans to begin a soil sampling programme immediately. The company has already secured funds for this activity.
“We will start a comprehensive soil sampling programme imminently, which is fully funded, and we look forward to reporting back to shareholders on our initial findings,” said Schirnding.
Brxton will also receive $25,000 in Arc shares once all conditions are met or waived.
Once drilling begins, or 24 months pass, Arc will pay an extra $100,000 in cash and $150,000 in shares. If copper resources exceed 500,000 tons, Arc will pay $50,000 in cash and $50,000 in shares.
Arc will make an additional $100,000 payment after it completes a successful feasibility study. It will also pay a 2% net smelter royalty, capped at $5 million.
JV Project with Anglo American Also Progressing
Arc is preparing to start drilling at its joint venture project with Anglo American in Zambia.
Von Schirnding said, “We are finalising an upcoming drill programme at the Zambian copper project (ZCP) joint venture (JV) project with Anglo American.”
The deal with Anglo American allows Arc to earn a stake by spending on the project and taking over operations.