Arc Minerals has entered into a Joint Venture with a subsidiary of Anglo American (“Anglo JV”) on its Zambian Copper Project (ZCP). This project covers approximately 767km² in the North Western Province, within the renowned Zambian Copperbelt. The area is home to world-class mines such as First Quantum Minerals' Sentinel and Kansanshi copper mines and Barrick's Lumwana mine. The JV licenses are located in the Mwinilunga district, well within the trending arm of the major geological structure known as the Lufilian Arc (Copperbelt), on the western flank of the Kabompo Dome. This region represents one of the last dome-related areas in Zambia yet to be explored in detail.
Under the Joint Venture Agreement, Anglo American can earn-in on the ZCP by making a number of project expenditures and assuming operatorship of the project. The commercial terms of the agreement were announced on 20 April 2023 and can be summarised as follows:
- Phase 1: Anglo will pay $14.5M in staged cash payments to Unico Minerals Ltd (67% owned by Arc) and invest up to $24M in exploration expenditures (total $38.5M) within three years and 180 days of the signing of the Agreement to secure a 51% interest in ZCP.
- Phase 2: Anglo may elect to increase its interest in the ZCP to 60% by investing a further $20M (total $58.5M) within two years of the completion of Phase 1.
- Phase 3: Anglo may elect to increase its interest in the ZCP to 70% by investing a further $30M (total $88.5M) within two years of the completion of Phase 2.