ARC Exploration has signed an agreement to acquire 100% of the issued capital of Cyprium Australia, which has an option to earn an 80% interest in the Cue Copper Project from Musgrave Minerals.
As part of an agreement signed between Cyprium and Musgrave Minerals last month, the former secured an option to earn-in and joint venture for an 80% stake in the non-gold rights over the tenements at the Cue Copper Project.
Located in the Murchison region of Western Australia, the project contains the Hollandaire VMS copper resource.
The Hollandaire deposit has a mineral resource of 39,000t of contained copper, with significant upside potential.
Musgrave Minerals currently holds the exploration leases and mining licenses that are located around 20km to the east of Cue in Western Australia.
Under the terms of the agreement, ARC will acquire all of the issued capital of Cyprium in exchange for 5,750,000 million ARC shares, at an issue price of 20c each.
Additionally, ARC will pay an introduction fee of 1,500,000 shares with an issue price of $0.001 per share to corporate advisors in relation to the agreement.
In case Cyprium exercises its option over the Cue project, ARC will issue Musgrave some $250,000 worth of shares, at a price equal to the 15-day volume weighted average share price.
The transaction is subject to the completion of due diligence, and ARC completing a capital raise of a minimum $2m, as well as shareholder and regulatory approvals.