Arc Minerals Shares Halve as Anglo American Joint Venture Ends
Arc Minerals Limited (AIM: ARCM) shares fell 50% after the company announced it has regained full control of its Zambian copper assets following the termination of its joint venture with Anglo American.
The two companies mutually agreed to end their partnership over Zambian mining tenements held through Handa Resources Limited, citing an extended period of inactivity. As part of the agreement, Anglo American has surrendered its interests, leaving approximately US$800,000 in Handa’s accounts.
Executive chairman Nick von Schirnding said “While we are sorry to part company with Anglo American, I am pleased that we revert to a controlling position in what is widely regarded as one of the most prospective copper tenements in Africa with only a fraction having been drilled to date. We will explore our options for these assets which may include a new joint venture partner.
Arc Minerals will now evaluate strategic options for the licences, which could include securing a new joint venture partner. The company added that, given its current cash position, no equity raise is expected in the near term.
