During the exclusivity period, which started in July 2020, Anglo had permission to conduct a technical review of Arc’s copper exploration licences in Zambia.
The expectation was that if the results of the review proved satisfactory it might result in an extension of the exclusivity and the negotiation of a commercial transaction.
Arc softened the blow by saying that discussions with Anglo are still taking place and have been positive.
Furthermore, the company has been approached by a number of other interested groups to commence discussions regarding a potential commercial transaction.
“As we have always said, any transaction has to sufficiently compensate Arc shareholders for allowing a major to take over an asset which we believe has significant potential to become a major tier-one copper discovery. We will continue our discussions with Anglo American which have been going well but will also commence discussions with other major mining companies that have approached us,” said Arc’s chairman, Nick von Schirnding.
“In the meantime, we continue with our very exciting drill programme and development of the Cheyeza East plant, against the backdrop of a very strong copper market,” he added.
Shares in Arc were down 20% at 4p.