UK-based Arc Minerals has signed a binding sale and purchase agreement (SPA) with Canadian private equity group Century Capital Management with respect to the sale of its 99.43% stake in Casa Mining.

In a statement, Arc Minerals noted that the initial consideration will include $1.8m in cash.

The company said it will be entitled to receive a further $2.5m in cash, in case the minerals resource estimate for Casa jumps to six million ounces (Moz) during the five year period from the closing of the deal.

It will also receive an extra $2.5m provided the resource increases to 9Moz and an additional $3m if the resource stands at 12Moz.

Private firm Casa holds a 73.84% stake in the 3Moz inferred resource Akyanga gold deposit in the Democratic Republic of Congo (DRC).

Arc Minerals chairman Nick von Schirnding said: “The transaction brings significant cash resources to Arc and at the same time removes ongoing opex.

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“Crucially, it allows us to focus on our exciting Zambian copper development where we are making excellent progress both on drilling and commercially developing our plant.

“Excitingly for Arc, we have significant further upside potential as Casa grows in size. As I have set out many times, we are clear on our vision in turning Arc into a focused copper play – this is a major step forward and we will continue all efforts to dispose of the remaining non-core gold interest, namely Šturec in Slovakia.”

The transaction closing is conditional upon completion of final due diligence.