(Alliance News) - Arc Minerals Ltd on Thursday said it signed an agreement with a subsidiary of FTSE 100-listed miner Anglo American PLC for the company's copper-cobalt project located in Zambia.
Arc Minerals shares were up 13% at 5.09 pence each on Thursday in London.
Through the joint venture, Anglo will have the right to retain a 70% ownership for an aggregate investment of up to USD88.5 million.
As part of this investment, Anglo will make cash payments to Arc Minerals of up to USD14.5 million.
Arc Minerals Chair Nick von Schirnding said: "This agreement represents a major turning point for Arc and follows many months of negotiations. I am delighted to be signing this agreement with Anglo American which will, upon execution and completion of the definitive agreements, result in the potential for significant investment by a reputable major mining company in the tenements in north west Zambia and a very exciting time ahead for us."
The two have agreed an exclusivity period of up to 90 days to allow for due diligence, and up to a further 90 days for the negotiation and execution of the joint venture agreement.
By Xindi Wei; xindiwei@alliancenews.com
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