30th Mar 2015 08:37
LONDON (Alliance News) - Ortac Resources Ltd on Monday said it has entered a secured convertible loan note and call option agreement with Zambia's Zamsort Ltd, which owns a prospective copper mining licence in the country.
Ortac will invest an initial USD600,000 via a subscription agreement to take a 10.7% stake in Zamsort.
It said Zamsort owns the rights to small-scale mining licence on the Kalaba prospect within the Zambian Copper Belt.
"Zambia is considered to be one of the most politically stable and mining friendly countries in Africa with the Zambian Copper Belt being recognised as the leading source of copper from the African continent over the last decade," said Ortac Chief Executive Vassilios Carellas.
"We consider the Kalaba Project to be one of the most exciting, undeveloped polymetallic assets in Zambia at the moment, offering existing small scale production along with the opportunity to explore a world class licence with the potential to host Zambia's next big mine development," Carellas added.
Ortac shares were up 5.9% to 0.09 pence on Monday.
By Sam Unsted; [email protected]; @SamUAtAlliance
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