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(Alliance News) - Arc Minerals Ltd has agreed an option to sell its holding in the Sturec gold project in Slovakia for up to USD8 million.
London-based Arc has received an option fee of AUD30,000, around USD20,500, which is not refundable. The option agreement has been signed with Sydney-listed explorer MetalsTech Ltd.
The option period lasts for 45 days, and if MetalsTech decides not to exercise it the agreement will lapse.
Arc would use any proceeds of a sale for exploration work and development work in Zambia.
A week ago, Arc said announced the USD9.8 million sale of its interest in the Akyanga gold project in the Democratic Republic of the Congo as it looks to focus on Zambia's Zamsort copper-gold asset.
Executive Chair Nick von Schirnding said on Tuesday: "We are delivering on our stated strategy of exiting our gold interests and this is an excellent outcome for Arc as we focus on developing our core copper assets in Zambia.
"With further significant upside to increasing the Sturec resource, Arc maintains an exposure to the development of this asset going forward which will benefit our shareholders."
If the option is exercised, Arc will get two cash payments of AUD450,000, less the option fee, and then AUD300,000. If within two years of sale Sturec's gold resource tops 1.5 million ounces at a grade of at least 2.5 grams of gold per tonne of ore, Arc will get a royalty of AUD2 per ounce of gold capped at seven million ounces.
Arc shares were 8.0% higher on Tuesday afternoon in London at 2.70 pence each.
By George Collard; georgecollard@alliancenews.com
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