Arc shares slump as licence revoked

Company News

Shares in Arc Exploration Limited (ASX:ARX) lost almost a third of their value yesterday after the junior gold explorer informed the market its Indonesian joint venture partner has had its licence revoked.

Arc and Sumber Mineral Nusantara hit the headlines at the end of last year after the death of two anti-mining demonstrators in Indonesia, after which the miner suspended its operations.

Arc advises further demonstrations last week have resulted in Sumber Mineral’s exploration licence being revoked due to civil disturbances and security issues.

Both JV partners believe they were in full compliance with all licence requirements at the time the licence was revoked and are currently reviewing alternatives open to it.

Shares in Arc Exploration slumped 28.57 per cent yesterday to close at $0.005.

Arc Exploration booked a net loss of $1.1 million for the half year to June 30, 2011.

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