Central Asia Metals Inks Deal For Shuak Copper Property In Kazakhstan
Central Asia Metals PLC Tuesday said it has inked a framework agreement to acquire an 80% stake in the subsoil use contract for the Shuak copper exploration property in northern Kazakhstan.
Central Asia Metals agreed to acquire the stake from a local company GRK-Aksu, and inked the deal at the UK-Kazakhstan Intern-Governmental Commission.
Central Asia Metals will invest a total of USD2 million in exploration activities, it said.
The licence area for Shuak is 197 kilometres squared, and was explored between 1973 and 1991. Central Asia Metals plans to commence field-based work in the second quarter of 2017. It will design an 1,800 metre trenching programme and undertake around 8,000 metres of drilling at Mongol V and other priority areas at Shuak.
Under the framework agreement, Central Asia Metals will hold an effective 80% stake in Ken Shuak LLP, the company that holds the sub-soil use contract, with 20% effectively being held by local partners.
“We are delighted to have agreed terms to acquire a majority stake in Shuak, which we have identified as an attractive opportunity given its location and economic prospects. We believe the project can be rapidly appraised to ascertain its copper oxide resource potential,” said Central Asia Metals Business Development Director Gavin Ferrar in a statement.
“We have built our business around our successful copper production facilities at Kounrad and are very comfortable operating in Kazakhstan. We are pleased to have been able to extend our footprint in Kazakhstan with this acquisition, and to begin to progress the Shuak property,” Ferrar added.
Shares in Central Asia Metals were up 0.7% at 218.05 pence Tuesday.