The company will offer shareholders shares priced at $0.0018 each, a 14.3% discount to the 30-day volume weighted average market price.
Proceeds will be used to carry out work on its existing projects that are either essential or involves minimal cash outlay while it pursues advanced joint venture discussions for their longer term development.
Until market conditions improve, this will primarily involve further analysis of existing data.
Directors and senior management of the company have elected to forgo 50% of their remuneration to the end of calendar 2015.
The remaining 50% of their remuneration which they are to receive will be paid by the issue of shares and as a result no cash remuneration will be paid to directors or senior management for the remainder of this year.
Shareholder approval will be sought at the next general or annual general meeting for the issue of shares to directors.
Arc has an agreement with New South Resources Pty Ltd (NYSE:NSR) to farm-in to their Junee Project in New South Wales, which is located close to existing mine operations and development infrastructure and near the major regional centre of Wagga Wagga.
This includes the 77,000-ounce Dobroyde gold deposit on which historic drilling has produced some high-grade intercepts within a low-grade mineralisation envelope, including 22 metres at 37.3 grams per tonne gold, 16 metres at 10.5g/t gold and 6 metres at 18.2g/t gold.
Junee comprises EL's 6516 (Dobroyde), 6768 and 8152. It covers a total area of about 73 square kilometres.
The Project is prospective for high-sulphidation epithermal gold and porphyry copper-gold styles of mineralisation.
The company also has an agreement with NSR to farm-in to their Oberon Project in New South Wales which is located close to existing mine operations and development infrastructure near the major regional centre of Bathurst.
Oberon hosts the 150,000-ounce Murphys gold deposit where historic drilling has produced some broad low-grade gold intercepts including 49 metres at 0.75g/t gold, 23 metres at 1.05g/t gold and 34 metres at 0.62g/t gold.
The project comprises EL's 6525, 8110 and 8349 that cover a total of about 200 square kilometres.
It is prospective for porphyry copper-gold and VMS-related gold-silver-base metal styles of mineralisation.
Mount Garnet Project
Arc also holds an option to farm-in to the Mount Garnet Project in Queensland's Mount Garnet mining district owned by Snowmist Pty Ltd.
It is envisaged that the company will exercise its option to farm-in to this project in August 2015.
Mount Garnet Project comprises three Mining Leases (ML's 4363, 4390, 20018) covering about 150 hectares that are 100% held by Snowmist, and an exploration tenement (EPM 25343) covering about 17 square kilometres that is held by Arc.
The mining leases contain the Triple Crown gold deposit, which contains a drill-indicated gold resource estimated to be 69,000 ounces and includes a small oxide resource of about 25,000 ounces gold.
Historic drilling at Triple Crown has produced some broad low to moderate grade gold intercepts including 22 metres at 2.33g/t gold, 51 meters at 1.73g/t gold and 35 metres at 1.39 g/t gold.
The Mount Garnet Project is prospective for granite/breccia pipe-hosted and skarn-hosted gold-silver-base metal styles of mineralisation.
Arc operates a joint venture with its local Indonesian partner P.T. Sumber Mineral Nusantara, which holds the Trenggalek Exploration IUP tenement in the Southern Mountains of East Java.
The Southern Mountains is composed of an older segment of the Sunda-Banda magmatic arc which hosts the Tumpangpitu porphyry copper-gold located about 200 kilometres to the east of Trenggalek, and the large Batu Hijau and Elang porphyry copper-gold deposits located on Sumbawa Island.
Trenggalek contains a similar package of rocks to those hosting these three major porphyry deposits.
The Trenggalek Exploration IUP tenement is valid until November 2016 and covers an area of about 300 square kilometres.
Several epithermal gold-vein prospects on the Trenggalek IUP have had limited drill testing but have produced some significant gold-silver intercepts including 9 metres at 4.5g/t gold and 8g/t silver at Sentul, 13.7 metres at 3.2g/t gold and 60g/t silver at Buluroto, and 6.6 metres at 4.9g/t gold and 149g/t silver at Kojan.
High-grade gold-vein float identified at the Jati and Jombok prospects have yet to be traced to source and are priority exploration targets.
Scout drilling of targets identified at the Jerambah and Singgahan prospects in the south-eastern corner of the IUP in late 2013-early 2014 confirmed the occurrence of large porphyry-style alteration systems containing low-grade copper-gold-molybdenum mineralisation at both prospects.
These large alteration systems remain open and have only been partly explored.
The company's strategy remains to attract joint venture partners to farm-in and fund development of properties, a recent example being the joint venture with Anglo-American (NASDAQ:AAL) at Trenggalek.
Anglo-American expended US$3.5 million, at no cost to ARX, which generated a wealth of new data that significantly advanced understanding of the porphyry potential at Trenggalek.
While Anglo-American elected not to proceed with the Trenggalek project, Arc considers that this is the most appropriate way for junior exploration companies to advance projects in difficult markets where access to equity funding may be constrained.
For the second half of 2015 ARX proposes to continue to conserve cash by undertaking only such work on its existing projects which is essential or involves minimal cash outlay while it pursues joint venture interest for their longer term development.
Until market conditions improve, this will primarily involve further analysis of existing data with the following objectives in mind:
- Junee: Increase understanding of resource and seek joint venture partner;
- Oberon: Evaluation of copper-gold potential and seek joint venture partner;
- Mount Garnet: Exercise option, review project feasibility and seek joint venture partner; and
- Trenggalek: Evaluation of gold and copper potential and seek joint venture partner.
Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX emerging companies with distribution in Australia, UK, North America and Hong Kong / China.