Arc Minerals (LSE:ARCM), the copper explorer working in Botswana and Zambia, has moved from legal clean-up to drilling in 2026. A comprehensive settlement in Zambia, a small fundraising in April and the start of a drilling campaign at the Virgo project have reshaped the story for a company whose shares trade at a fraction of a penny.

What the company does

Arc Minerals describes itself as an exploration company focused on discovering and developing Tier 1 copper deposits in Africa. Its main activity is in Botswana, where it holds ground along the Kalahari copper belt, and in Zambia, where it has the Kabompo West project and a greenfield prospect at Mpongwe.

Zambia settlement and fundraising

On 27 May 2026 LSE:ARCM announced a comprehensive settlement in Zambia that resolves all outstanding litigation affecting the business. Earlier, in late April, it raised 3 million pounds through a placing and subscription at 0.4 pence per share to explore the Zone 5 corridor of the Kalahari copper belt; the shares fell about 12.8% to 0.41 pence after the raise. The interim accounts show net proceeds from share issues of 2.878 million pounds in the half-year.

Interim results

For the six months to 30 June 2026, published on 21 September, the loss for the period narrowed to 1.739 million pounds from 2.277 million pounds a year earlier, equal to a basic loss of 0.10 pence per share. The operating loss fell to 965,000 pounds from 2.117 million pounds as administrative costs dropped.

Cash and equivalents rose to 1.861 million pounds from 635,000 pounds at the end of 2025, with a further 504,000 pounds held in a short-duration bond fund. Total Assets were 5.672 million pounds and net assets 4.96 million pounds. Restrictions on Handa Resources bank accounts were lifted in September following the settlement. Directors said they had a reasonable expectation that the group has sufficient funds to keep operating for the foreseeable future.

Operations in Botswana and Zambia

In its third-quarter investor update on 22 October 2026, LSE:ARCM said Geophysical surveys had identified about 18 kilometres of prospective contact at Virgo, that drilling had begun with three holes completed, and that the programme is planned to exceed 6,000 metres. In Zambia, it is pursuing a dual-track strategy at Kabompo West, including active discussions on strategic partnerships, while early-stage work is planned at Mpongwe. The update gave cash and short-term investments of about 2.89 million pounds at 30 June 2026.

Corporate housekeeping

On 9 July 2026 the company granted 61 million restricted stock units and 59 million share Options to directors and senior management. A director resignation was announced on 11 August, and on 6 October the company named Strand Hanson as its nominated adviser with immediate effect.

Sector and index context

Arc is among many small exploration names on the FTSE AIM All Share Index, where resource companies are typically valued on prospects rather than earnings. Copper has attracted attention because of its role in electrification and power infrastructure, but junior explorers remain dependent on Stock Markets and on drilling results to sustain valuation.

Key risks

Exploration carries geological risk and licensing risk, and early holes may not intersect economic mineralisation. LSE:ARCM has about 1.27 billion warrants outstanding, which could add to dilution if exercised, and further funding will probably be needed as drilling expands.

What to watch next

The first assay results from Virgo, the progress of Partnership talks at Kabompo West, the scale and timing of any further fundraising, and the full-year results will be the main catalysts.