Arc agrees settlement as a final resolution to Zambia legal disputes
Arc Minerals, which is focused on discovering and developing Tier 1 copper deposits in Africa, has executed a comprehensive settlement agreement with various entities, bringing to a full and final conclusion all outstanding litigation between the parties in Zambia.
The agreement was entered into between Arc, Handa Resources, Unico Minerals and Kopara Investments (collectively Party A) and Zambia Mineral Exchange Corporation, Lunda Resources and Mumena Mushinge (collectively Party B) and terminates eight sets of ongoing proceedings across multiple Zambian courts and tribunals.
It resolves all ongoing litigation impacting on Arc in Zambia.
“I am very pleased that we have successfully reached a comprehensive and final resolution of all outstanding legal disputes in Zambia. This settlement allows us to focus entirely on advancing our exploration and development activities across Botswana and Zambia.
“Arc’s Kabompo West project represents one of the largest exploration footprints in the Domes region of Zambia,” comments Arc CEO Rémy Welschinger.
SETTLEMENT TERMS
Party A and Party B have agreed to resolve all existing disputes, claims, counterclaims and proceedings between them on a full, final and comprehensive basis, and to formally discontinue all pending litigation.
Without any admission of liability by either Party A or B and, in consideration of the terms of the settlement agreement, each party irrevocably and unconditionally releases and absolutely discharges each other and their related parties, from any and all claims, demands, actions, causes of action and proceedings of whatever nature, whether past, present or future, actual or contingent, known or unknown, matured or unmatured, and in any jurisdiction whatsoever, including before any court, tribunal, arbitral panel, regulatory authority or other body.
Further, Party B has agreed to pay a $200 000 settlement payment to Party A, contingent on Party B delivering a Joint Ore Reserves Committee-compliant measured mineral resource of not less than 30-million tonnes at a cut-off grade of 1.5% copper on Lunda’s 41777-HQ-LEL licence on or before December 31, 2031. No payment is due if this condition is not met by that date.
In addition, Lunda irrevocably and unconditionally renounces, waives, disclaims and abandons all alleged rights, title, interest, claims or entitlements (whether legal, beneficial, contractual, possessory or otherwise) in or to Handa’s large-scale exploration licence 19906-HQ-LEL and the tenement subsisting thereunder and undertakes not to assert or make any representations or filings in relation to any Interests in any court, tribunal, regulatory authority or other forum, whether in Zambia or elsewhere, that is inconsistent with Handa’s ownership of 19906-HQ-LEL.
Lastly, the parties acknowledge that large-scale exploration licence 41777-HQ-LEL is legally owned by Lunda, with Handa having similarly renounced any Iinterests in this licence. The ground under licence 41777-HQ-LEL was originally part of Handa’s wider licence area but is considered an immaterial asset to Arc.