Arc Minerals rallies after acquiring 5% interest in Zaco Ltd

After announcing the successful results from its Cheyeza East prospect and identifying West Lunga as a drilling target, copper, gold and cobalt mining company Arc Minerals (LON: ARC) continues its productive week by announcing a further 5% acquisition of Zaco Limited.

This announcement means that the Company now holds a 47.5% interest in Zaco.

Arc Minerals statement

On the update, the Company’s statement read,

“Following the discovery of the large West Lunga target (as per the announcement dated 4 July 2019), Arc Minerals has purchased a further 5% interest in Zaco from Rémy Welschinger, a Non-Executive Director of Arc, for a total consideration of 1,414,000 New Ordinary Shares of no par value in the share capital of the Company (“New Ordinary Shares”).”

Executive Chairman of the Company, Nick von Schirnding, commented,

“Following the exciting news of the West Lunga discovery we are keen to consolidate our interest in Zaco and we are pleased to have increased our interest in Zaco on the same commercial terms as the initial transaction.”

On yesterday’s positive news, the Arc Minerals Executive Chairman stated,

“These maiden drill results have exceeded all our expectations both in terms of grade and thickness. While we are still at an early stage in the drilling programme, these results are highly encouraging and we have now deployed two rigs to Cheyeza East. Importantly our third hole 200 meters south also shows significant mineralization.”

Investor notes

The Company’s share price is up 7.05% or 0.26p to 3.99p a share since trading began 05/07/19 11:25 GMT.

Elsewhere in the mining and minerals sector, recent updates have come from; Arc Minerals Ltd (LON: ARCM) Thor Mining PLC (LON: THR) Premier African Minerals (LON: PREM), Pathfinder Minerals (LON: PFP), AfriTin Mining Ltd (LON: ATM), Ferrexpo Plc (LON: FXPO) and Altus Strategies Plc (LON: ALS).

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Jamie Gordon
Senior Journalist at the UK Investor Magazine. Also a contributing writer at the Investment Observer, UK Property Journal and UK Startup Magazine. Postgraduate of King's College London with a specialisation in Business Ethics. Interested in Development Economics and David Hume.