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Highlights

  • ARCM signs binding agreement to recover up to GBP 1.25 million receivable from Avanti and Regency.
  • Arc Minerals offers tiered cash settlement options through December 2025.
  • The company cites improved cash position into 2026 amid ongoing cost reductions.

Arc Minerals Ltd (LSE:ARCM) has entered into a binding settlement agreement with Avanti Gold Corporation and Regency Mining Ltd to resolve a longstanding receivable of GBP 1.25 million linked to the sale of its interest in Casa Mining Ltd. The new arrangement follows extended negotiations and replaces a previous plan involving share issuance that was never fulfilled.

The receivable dates back to a 2022 transaction in which Regency acquired Casa Mining, the holding company for a 73.5% interest in the Misisi gold project in the Democratic Republic of the Congo. Although the original settlement was to be made via the issuance of shares in Avanti Gold, the transaction remained incomplete for more than two years. In its 11 July 2025 announcement, Arc confirmed that the parties had now agreed to resolve the matter through a tiered cash payment plan, with different amounts due based on timing of payment.

Under the new binding agreement, Avanti and Regency are jointly and severally responsible for settling the outstanding balance. Arc Minerals has agreed to accept a reduced sum if payment is received before set deadlines:

  • GBP 562,500 (representing 45% of the total) if paid by 31 August 2025.
  • GBP 625,000 (50%) if paid by 31 October 2025.
  • GBP 750,000 (60%) if paid by 31 December 2025.

If none of these reduced settlements are paid by the end of 2025, the full original receivable of GBP 1.25 million becomes payable on 1 January 2026. Thereafter, any unpaid balance will accrue compound interest at a rate of 2% per month until fully repaid. The company stated that any funds received under this agreement will be directed toward working capital.

Arc Minerals noted that it continues to maintain a positive cash outlook, supported by both current reserves and anticipated inflows. The company also highlighted internal cost-saving measures that have been implemented since the beginning of the year. These measures include significant reductions in executive compensation. Board and management fee payments have been reduced by up to 50%, and Arc expects these reductions to remain in place into 2026.

In a brief statement, Executive Chairman Nick von Schirnding acknowledged the conclusion of the negotiations, noting that the settlement will contribute to the company’s financial resources through next year. He reiterated that the agreement aligns with Arc’s previously communicated financial planning and guidance.

ARCM share were trading at 2.62% higher at GBX 1.00 per share on 11 July 2025.