SP Angel note7 Nov 2022 14:24
Arc Minerals* (ARCM LN) 2.98p, Mkt Cap £34m – Arc extends exclusivity agreement for Anglo American
Arc Minerals has extended the exclusivity agreement previously agreed with Anglo Exploration Zambia Ltd for a second time.
The new agreement will run to 8th February 2023.
Arc’s press release says “following the re-opening of the Zambian Mining Cadastre office on 19 October 2022, the Cadastre published a schedule that it will start receiving new applications for licenses from 21 November 2022. As a result of the Cadastre process and this new timeline Arc has extended the exclusivity period under the Letter Agreement (the "Agreement") with Anglo Exploration Zambia Ltd ("Anglo") to 8 February 2023, pursuant to which the parties intend to form a joint venture with respect to the Company's copper projects located in the North-Western province of Zambia (the "Joint Venture").”
The relatively new President Hakainde Hichilema, known as HH, was elected in August 2021 overthrowing Edgar Lungu who had previously jailed HH on illegitimate charges of treason.
President Hichilema was previously CEO of Coopers and Lybrand Zambia from 1994–1998 and Grant Thornton Zambia from 1998–2006.
The president has been busy unwinding corrupt practices and corruption in Zambia including allegations of corruption within the Zambian Ministry of Mines.
Conclusion: Now the Zambian Cadastre is open again for new license applications we expect Anglo’s lawyers to be able to verify the licenses and ownership information they require to consummate the agreed deal with Arc Minerals
*SP Angel acts as Nomad and broker. An SP Angel analyst has driven across the Zambian copper belt, flying the British flag, to visit Arc’s licenses West of Solwezi.