(Alliance News) - Arc Minerals Ltd on Friday said that it had unconditionally completed its joint venture agreement with a subsidiary of Anglo American PLC, which concerns copper interests in northwestern Zambia.
The Africa-focused base metals exploration company with projects in Zambia and Botswana said this was after the remaining conditions were satisfied, including a USD3.5 million cash payment to Unico Minerals Ltd, which is a 67%-owned subsidiary of Arc Minerals.
It also announced that Ian Lynch has been appointed as chief financial officer in a non-board capacity, as Remy Welschinger has stepped down as finance director with immediate effect to "focus on his other interests".
Arc Minerals said Welschinger will remain on the board as a non-executive director.
Executive Chair Nick von Schirnding commented: "I am delighted to announce that the Anglo American JV has now gone unconditional - a great milestone for our shareholders. I welcome Ian as our CFO - he has been actively involved over the past few years with our finance team and brings extensive finance, legal and compliance experience.
"On behalf of the board I would also like to thank Remy for his hard work over the past four years as our finance director both in financing the company's projects and helping negotiate the Anglo American transaction."
In April, Arc Minerals signed a binding joint venture agreement with a subsidiary of Anglo American, in which Anglo American will have the right to retain up to 70% shareholding in the joint venture company of up to USD88.5 million, based on exploration expenditures announced in May last year.
At this time, Arc Minerals added that Anglo American will make cash payments to it of up to USD14.5 million as part of the investment.
Shares in Arc Minerals were up 4.7% to 3.93 pence each in London on Friday afternoon.
By Greg Rosenvinge, Alliance News senior reporter
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Arc Minerals (ARCM)
Anglo American (AAL)