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Arc Minerals Shares Edge Higher on Progress of Alvis-Crest Acquisition

Sam Boughedda trader
Updated 4 Nov 2021

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: 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.

Should you invest in Arc Minerals shares?

Arc Minerals shares are traded on the London stock exchange's AIM market (the alternative investment market), which is the submarket specifically for smaller companies. AIM stocks are attractive to investors as they have tax advantages and smaller companies have the potential to benefit from rapid growth. But are ARCM shares the best buy? Our stock market analysts regularly review the market and share their picks for high growth companies

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Sam is a trader and lead stock market writer at AskTraders. After starting his career in the forex market, Sam now focuses on stocks, specifically consumer staples.