Arc Minerals (LON:ARCM) share price has surged over 50% after the company announced that it has signed a six-month exclusivity agreement with a subsidiary of Anglo American PLC regarding its copper licenses in Zambia.
Arc Minerals is an AIM-listed, Zambia-focused copper exploration and development company, while Anglo American is a global mining company with its focus on diamonds, platinum, copper, and iron ore.
As part of the exclusivity agreement, Anglo American can conduct a technical review which, if satisfactory, may result in an extension of the exclusivity and the negotiation of a commercial transaction according to ARC.
The company provided little in the way of details regarding the agreement with Anglo American. However, they did say that there is no guarantee that the commercial transaction will be completed.
Arc went on to say that it will continue with its existing drilling program during the period of the agreement.
After the news was announced, Arc shares skyrocketed as high as 53% to 3.30p per share, retracing from a key price area. In the last hour, it has fallen to 3p per share, up by 39.53%.