Arc Minerals has reached an agreement to acquire an additional 6% interest in Zambia-based Zamsort from two separate shareholders.
Through the deal, the company will be able to increase its interest in Zamsort, which holds a copper-cobalt licence in Zambia, to 61%.
Under the terms of the agreement, Arc will issue 12,000,000 new ordinary shares to the vendors who agreed to sell their stake in Zamsort.
Additionally, the vendors will receive a warrant over a total of 2,520,000 new ordinary shares of Arc with an exercise price of six pence per ordinary share.
Arc Minerals executive chairman Nick von Schirnding said: “We are continuing to follow through on our promise to rapidly deliver value for shareholders at the Zamsort copper-cobalt project both at a corporate level and on the ground.
“A comprehensive drilling programme at Zamsort is due to begin imminently and we are extremely excited at the prospect of unlocking the significant value, which we believe to be inherent within this highly sought-after Zambian copper-cobalt asset.
“We look forward to providing further updates to the market in the near-term on our continued progress with the drilling programme at Zamsort, as well as the Casa gold project.”
The latest development comes after Arc increased its stake in Zamsort to 55% earlier this month.
Arc has selected a Zambia-based drilling contractor to undertake the drilling programme.
The arrival of the first of three drill rigs on site is slated for this week, while the remaining two will arrive at a later date.
The exploration licences held by Zamsort are located in north west Zambia, 800km from Lusaka and 200km from Solwezi.
A commercial scale demonstration plant is under construction at the Zamsort-owned Kalaba copper cobalt site.