Lion Selection invests in Arc

Arc Exploration Limited reported on Tuesday that it has released the allotment of 7,821,737 ordinary fully paid shares to Lion Selection Group Limited (Lion Selection).

This allotment is a conversion of existing debt into equity under a convertible Bridging Facility (Facility) originally provided by Lion Selection and other investors in January 2007 to fund ongoing development of the now disposed of Cibaliung Gold Project.

Under the Facility, Lion Selection could elect to have their loan repaid in a combination of cash and shares or entirely as shares. Lion Selection has exercised its right to have its loan repaid entirely in shares which Arc Exploration considers an endorsement of their positive outlook for the Company.

This transaction strengthens the financial position of Arc Exploration through the reduction of a significant amount of debt, particularly short dated debt. The conversion of the loan also has the benefit of increasing the institutional shareholder presence on Arc Exploration?s share register.

Managing Director of Arc, John Carlile said, ?We welcome Lion Selection?s involvement with Arc and see it as a vote of confidence particularly with our drilling program about to commence at Trenggalek?.

Lion Selection is a mining investment company with a history of investing in small to medium resource companies in Asia and Africa. Lion Selection?s aim is to invest in a portfolio of carefully selected companies with outstanding management and projects, and excellent value and growth potential. (romel)