Anglo American: Arc Minerals enters into A Joint Venture Agreement with Anglo American on Its Zambian Copper Project

Arc Minerals has entered into a Joint Venture Agreement with Anglo American on its Zambian Copper Project (ZPC) comprising a number of licenses covering circa 870km2 ha in the North Western Province, in the Domes region of the Zambian Copperbelt near world-class mines such as First Quantum Minerals' Sentinel and Kansanshi copper mines and Barrick's Lumwana mine. The license areas are located approximately 900 km from Lusaka, in Mwinilunga, North Western Province, and is well within the trending arm of the major geological structure known as the Lufilian Arc (Copperbelt), on the western flank of the Kabompo Dome. The Copperbelt is home to all the major copper mines in Zambia and these licenses represent one of the last dome-related areas in Zambia yet to be explored in any detail. Under the agreement, Anglo American can an earn-in on the ZCP by making a number of project expenditures and assume operator ship of the project. The details of the agreement are set out below: Phase 1 - Anglo will pay $14.5 million in staged cash payments to Unico Minerals Ltd. (67% owned by Arc) and invest up to $24 million in exploration expenditures (total $38.5 million) within three years and 180 days of the signing of the Agreement (RNS 20.04.23) 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 $20 million (total $58.5 million) 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 $30 million (total $88.5 million) within two years of the completion of Phase 2.