|
Arc Minerals Ltd on Friday said it has reached a binding settlement deal with Avanti Gold Corp and Regency Mining Ltd, in relation to the $1.3 million owed to Arc Minerals. The copper exploration company focused on mines in Africa said was owed the amount after Regency bought Arc subsidiary Casa Mining Ltd in September 2023, which holds a 73.5% stake in the Misisi gold project in the Democratic Republic of the Congo. The amount should have been settled through the issuance of shares in Avanti Gold, but had not to date been satisfied. Avanti and Regency will settle the total outstanding amount through a reduced cash payment of $562,000 if settled by August 31. If settled by October 31, a payment of $625,000 will be made, or if settled by December 31, $750,000 will be owed. If payment is not made by December 21, the full outstanding amount of £1.3 million becomes immediately due and payable in full by January 1, 2026. If still unpaid by then, the amount will accrue compound interest at a rate of 2% a month until it is settled in full. ‘I am pleased that we have reached a binding agreement with Avanti and Regency after a lengthy period of constructive negotiations. Funds from the settlement will, in addition to existing and future contractual cash, further support the company’s cash position into 2026, in line with previous guidance,’ said Arc Minerals Executive Chair Nick von Schirnding. Arc Minerals said its existing resources and future contractual cash puts the company in a positive cash position going into 2026. The firm has cut fee payments by up to 50% for board and management since the start of the year, which it expects will remain in place into 2026. Shares in Arc Minerals were up 6.4% at 1.04 pence in London on Friday morning. The stock remains down 26% over the past year, however. Copyright 2025 Alliance News Ltd. All Rights Reserved.
|
