London-listed Arc Minerals has signed a binding agreement for its Zambian subsidiary, Foreland Minerals, to acquire the Chingola Copper Project in Zambia’s Copperbelt from Brxton Construction.
“This acquisition marks another important step in Arc’s strategy to strengthen our footprint in the Zambian Copperbelt. We’ve pursued this highly competitive asset for the past 18 months,” said Arc Chairperson Nick von Schirnding.
Located in the north-eastern Copperbelt, the 311 km² licence area sits near major operations such as Vedanta Resources’ Nchanga Mine and Moxico Resources’ Mimbula Mine.
The region is noted for its historically higher copper grades compared to the north-western Copperbelt.
Arc plans to immediately begin a fully funded soil sampling programme, with initial findings to be shared with shareholders in due course.
Arc will pay Brxton an initial $50,000, followed by staged payments tied to exploration milestones and regulatory approvals. Key terms include:
- $25,000 in Arc shares upon satisfaction or waiver of conditions precedent
- $100,000 in cash and $150,000 in shares upon commencement of drilling or within 24 months of transaction completion
- $50,000 in cash and $50,000 in shares payable within ten business days of confirming JORC-compliant resources exceeding 500,000 tonnes of copper
- $50,000 in cash and $50,000 in shares upon completion and announcement of a definitive feasibility study
- A 2% net smelter royalty, capped at $5 million, with Arc holding right of first refusal on any royalty sale
Von Schirnding also confirmed that Arc is finalising plans for its next drill programme at the Zambian Copper Project (ZCP), part of its joint venture with Anglo American.
Under this JV, Arc can earn into the project by funding exploration activities and taking on operatorship, as per agreed terms.
