Key Takeaways:
Arc Minerals Ltd. (LSE: ARCM) raised approximately £2.9 million through a placing and subscription to fund an exploration campaign in Botswana’s highly prospective Kalahari Copper Belt. The fundraise, announced on April 23, 2026, saw shares issued at 0.4 pence, a 15.8 percent discount to the previous day's closing price.
"The company is now fully funded for an exciting exploration campaign this year in the only licence held by a junior inside the Zone 5 corridor of the Kalahari copper belt," Rémy Welschinger, Chief Executive Officer at Arc Minerals, said in a statement.
The fundraising consists of a placing and direct subscription for a total of 750 million new ordinary shares. The proceeds are earmarked for exploration at the company's Virgo Project in Botswana, with a portion reserved for legal costs and due diligence at the Kabompo West Project in Zambia and for general working capital. Following the announcement, Arc's shares fell 12.8 percent to 0.41 pence.
The deal structure provides a significant boost to the company's balance sheet and exploration capabilities. In addition to the cash injection, the fundraise includes one-for-one warrants exercisable at 0.8 pence for three years, potentially providing future funding. The exploration campaign will begin with geophysical work ahead of a drilling program planned for the second half of the year.
Alongside the main fundraise, Arc will convert approximately £1.0 million of outstanding liabilities into equity. The debt, owed to directors, senior management, and contractors, will be satisfied through the issuance of over 250 million new shares at the same 0.4 pence issue price.
This creditor subscription, which includes significant amounts for CEO Rémy Welschinger and other board members, further strengthens the company's financial position by cleaning up the balance sheet. Participants in the creditor subscription will also receive warrants on the same one-for-one basis, aligning management and creditor interests directly with shareholders.
Arc Minerals is focused on discovering and developing Tier-1 copper deposits across two of Africa's most prospective copper belts. The Virgo Project in Botswana is situated within the Kalahari Copper Belt's Zone 5 corridor, a region known for significant copper deposits. The new funding allows Arc to aggressively explore this area.
The company's other flagship asset, the Kabompo West Project in Zambia, is located in the Western Domes of the Central African Copperbelt, which hosts multiple major copper mines. While the bulk of the new funds are for Botswana, a portion is reserved to advance the Zambian project, indicating its strategic importance.
This article is for informational purposes only and does not constitute investment advice.
