LONDON (ShareCast) - (Sharecast News) - Arc Minerals announced on Friday that it entered into a binding settlement agreement with Avanti Gold Corporation and Regency Mining over a long-standing $1.25m receivable related to the 2022 sale of Casa Mining, which owns a majority stake in the Misisi gold project in the Democratic Republic of the Congo.
Under the new terms, the AIM-traded firm said the amount would now be repaid in cash, replacing the earlier agreement for settlement via shares in Avanti.

The agreement allowed for a tiered repayment - $562,500 if paid by 31 August, $625,000 if by 31 October, or $750,000 if by 31 December.

If payment was not made by the end of the year, the full $1.25m would become due immediately on 1 January 2026, and would accrue compound interest of 2% per month until fully settled.

Funds received under the agreement would be used for working capital.

Arc said the settlement, alongside existing cash and future contractual income, positioned the company well into 2026.

The board said it had also implemented cost-saving measures, including a 50% cut to management and board fees, which are expected to remain in place through next year.

"I am pleased that we have reached a binding agreement with Avanti and Regency after a lengthy period of constructive negotiations," said executive chairman Nick von Schirnding.

"Funds from the settlement will, in addition to existing and future contractual cash, further support the company's cash position into 2026, in line with previous guidance."

At 0942 BST, shares in Arc Minerals were up 4.36% at 1.02p.

Reporting by Josh White for Sharecast.com.

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