(Alliance News) - Shares in Arc Minerals Ltd soared on Wednesday after it said it will commence discussions regarding an exclusivity agreement with Anglo American PLC subsidiary Anglo Exploration Zambia Ltd.
The stock was trading 17% higher at 4.80 pence each on Wednesday morning in London.
In July, the copper and cobalt explorer said its two subsidiaries, Zamsort and Zaco, signed a confidentiality and six-month exclusivity agreement with Anglo Exploration Zambia in respect of its copper exploration licenses in Zambia.
At the time, Arc Minerals stated that during the exclusivity period, Anglo American will be permitted to conduct a technical review which, if satisfactory, may result in an extension of the exclusivity and the negotiation of a commercial transaction.
On Wednesday, the company said it has received a formal notice from Anglo Exploration stating that following due diligence, it has decided to conduct negotiations in respect of a commercial transaction before the expiry of the extended exclusivity period of 180 days.
However, Arc Minerals noted there is no guarantee it will enter into any commercial transaction.
By Ife Taiwo; ifetaiwo@alliancenews.com
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