Shares of ARC Minerals Ltd (LON: ARCM) surged 26.8% after the company received a formal notice from Anglo Exploration Zambia Ltd (“Anglo American”) to commence negotiations on a potential commercial agreement.
Anglo American extended the exclusivity period up to 180 days commencing January 2021 to allow for the negotiations to occur. However, Arc Minerals warned its shareholders that there is no guarantee it will enter into a commercial agreement with Anglo American.
Arc Minerals yesterday announced that it had raised £2 million before expenses from Hargreave Hale Ltd via the placement of 57,142,857 ordinary shares at 3.5p per share to shore up its balance sheet.
WELCOME BONUS - Free Share Bundle When You Invest £50!
Get up to £500 cashback for investing with IG.
The mining company has an exciting copper-cobalt project in Zambia. It is set to benefit from the projected surge in demand for energy metals, including copper, whose annual global consumption is 29.6 million tonnes.
Arc Minerals has released several positive updates on its various exploration projects. It would be nice to see the company start official mining operations at sites such as the Fwiji and Muswema Prospects.
Today’s spike is good for the miner’s stock given that it just broke above the long-term resistance level at 4.50p, which could launch a new uptrend if the price holds above this level over the next few days.
ARC Minerals share price
Arc Minerals shares today surged 26.82% to trade at 5.20p having risen from Tuesday’s closing price of 4.10p.