Arc Minerals shares jump after the firm receives notice from Anglo American regarding Zambian mine
(Kitco News) - Shares in Arc Minerals (ARCM:LSE) shares jumped this morning after the firm said it has received a formal notice from Anglo Exploration Zambia Ltd (Anglo American (AAL:LSE) dated 6 January 2021 that, following due diligence, it is sufficiently satisfied to give notice to conduct negotiations in respect of a commercial transaction prior to the expiry of the extended exclusivity period of 180 days, commencing in January 2021.
For some context, this agreement is related to exclusivity on the Zamsort and Zaco copper licences in Zambia. Under the agreement, Arc had continued drilling while Anglo American conducted a technical review, which could result in an extension of the exclusivity and the negotiation of a commercial transaction.
At the end of the brief statement, the firm noted: Arc reminds shareholders that there can be no guarantee that the Company will enter into any commercial transaction with Anglo American.
As you can see from the daily price chart below the share price shot higher at the open. It met some resistance at the level on the left of the chart from August 2019. If there is a significant-close above the resistance area then it could be a bullish signal for the share price. One key thing of note on the chart is the volume behind the move. The market clearly backs the move higher and it will be interesting to see if this continues in the coming days.