Arc reaches settlement with Avanti, Regency for cash instead of shares
Aim-listed copper investment company Arc Minerals has entered into a binding settlement agreement with Avanti Gold and its subsidiary Regency Mining to settle an outstanding $1.25-million owed to Arc.
The outstanding receivable arose after Regency acquired the Casa Mining subsidiary in September 2023, which holds a 73% interest in the Misisi gold project, in the Democratic Republic of Congo.
The amount had been due to be settled through the issuance of shares in Avanti Gold; however, this had not been satisfied to date.
Arc, Avanti and Regency have continually engaged constructively to resolve the issue, with the binding settlement agreement reached now stipulating a cash payment rather than a shares issuance.
Avanti and Regency will settle the total outstanding amount through a reduced cash payment of $562 500 if settled by August 31, or $625 000 if settled by October 31, or $750 000 if settled by December 31.
Should payment not have been made by December 31, the full outstanding amount of $1.25-million becomes immediately due and payable in full by January 1, 2026.
From January 1, if still unpaid, the amount will accrue compound interest at a rate of 2% a month until settled in full.
Arc will ultimately use the settlement funds for working capital purposes.
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