new-recommended-broker-banner new-recommended-broker-banner

ARC Minerals Shares Spike 26.8% Higher on £2M Share Placement, Contract Extension

Updated: 13 Jan 2021

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.

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

Tradingview chart of Arc Minerals share price 13012021

Arc Minerals shares today surged 26.82% to trade at 5.20p having risen from Tuesday’s closing price of 4.10p.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage . 75 % of retail investor accounts lose money when trading CFDs with this provider . You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money .