Shares of Arc Minerals are up around half a percent Thursday after it provided an update on its acquisition of 75% of Alvis-Crest Limited from Kopore Metals Limited.
Alvis is the holder of two prospecting licences in Botswana's Kalahari Copper Belt.
Arc said it has agreed to pay Kopore £1.2m, via the issue of 35.4 million ordinary shares.
Arc have the option to acquire the remaining 25% of Alvis for $5m, exercisable until Arc makes a final investment decision, which would be upon the completion of a bankable feasibility study in respect of the licences.
Arc is committed to spending $200,000 per year on the prospects and would be required to pay a 1% net smelter royalty, capped at S$30m to Kopore. The royalty can be bought out at the cost of $5m.
Nick von Schirnding, Executive Chairman of Arc Minerals, stated:Â “The acquisition of Alvis expands Arc's portfolio with a very interesting asset in an emerging copper district. There is a global rush for attractive copper projects and the Kalahari Copper Belt is becoming a very attractive location for global mining groups.”
Arc's shares are currently trading around the 3.02p level.
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