(Alliance News) - Arc Minerals Ltd said Friday that it has been approached by a number of groups, concerning its exploration licenses in Zambia, following the expiration of an exclusivity agreement with mining major Anglo American PLC.
"We will continue our discussions with Anglo American which have been going well but will also commence discussions with other major mining companies that have approached us," Executive Chair Nick von Schirnding said.
Arc Minerals shares sunk 12% to 4.40 pence each in London on Friday morning, but are still up 14% since the start of the year.
Last July, two of Arc's subsidiaries, Zamsort and Zaco, inked a confidentiality and six-month exclusivity agreement with a subsidiary of Anglo American, called Anglo Exploration Zambia Ltd, for its copper exploration licenses in Zambia.
Under the now expired agreement, Anglo American was permitted to conduct a technical review which led to an extension of the exclusivity agreement in January. Following its extension, Arc said that it was negotiating with Anglo American about a possible commercial transaction.
Arc said Friday that discussions with Anglo American have been positive and continue to be.
However, the company has also been approached by "a number of interested groups".
Von Schirnding said: "We will continue our discussions with Anglo American which have been going well but will also commence discussions with other major mining companies that have approached us.
"In the meantime, we continue with our very exciting drill programme and development of the Cheyeza East plant, against the backdrop of a very strong copper market."
Anglo American shares were up 2.4% in London to 2,938.00p each on Friday morning, and were up 2.7% to ZAR575.58 each in Johannesburg.
By Greg Roxburgh; gregroxburgh@alliancenews.com
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