(Sharecast News) - Africa-focussed exploration company Arc Minerals has agreed to sell its entire 99.43% interest in Casa Mining to Century Capital Management for up to $9.8m.
Arc Minerals will receive an initial consideration of $1.8m from the Canadian private equity group - an amount the group said would have "a significant positive impact" on its cash and balance sheet position.
The AIM-listed company will also be entitled to receive $2.5m in cash if Casa's mineral resource estimate increases to six million ounces during the five-year period from the closing of the transaction, with an additional $2.5m payable on the resource increasing to nine million ounces and a further $3m if it reaches 12m ounces.
Chairman Nick von Schirnding said: "This is a major strategic milestone for Arc. The transaction brings significant cash resources to Arc and at the same time removes ongoing opex.
"Crucially, it allows us to focus on our exciting Zambian copper development where we are making excellent progress both on drilling and commercially developing our plant."
At 1040 GMT, the shares were down 2.6% at 2.80p.
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