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16/04/2024
Mining News

Central Asia Metals to invest £3 million in Aberdeen Minerals for 28.7% equity stake

Central Asia Metals (CAML) has announced a conditional investment of £3 million ($3.8 million) in Aberdeen Minerals, acquiring a 28.7% equity holding in the company.

CAML, which operates the Kounrad SX-EW copper operation in central Kazakhstan and the Sasa zinc-lead mine in North Macedonia, is investing in Aberdeen Minerals, a privately-owned junior raw battery materials explorer based in Aberdeenshire, Scotland. Aberdeen Minerals holds a 7,400-hectare land package, with its Arthrath project showing potential for a copper-nickel-cobalt deposit originally discovered by Rio Tinto in 1968.

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The British Geological Survey (BGS) produced a report last year identifying areas in the UK prospective for critical raw materials, as part of the UK government’s strategy to enhance resilience in critical mineral supply chains.

The investment from CAML will support further drilling, studies, and test work. CAML believes that the UK is experiencing a mining revival, driven largely by the green energy transition, making it an attractive jurisdiction for exploration investment.

The financing includes a conditional cornerstone investment of £3 million ($3.8 million) at 8.5 pence per share, with warrants granted to CAML for an additional £2 million ($2.5 million) investment at 11 pence per share, potentially increasing CAML’s ownership to 37.8%.

Aberdeen Minerals CEO Fraser Gardiner expressed enthusiasm for the partnership, highlighting CAML’s track record in successful mineral production and its endorsement of their projects’ technical merits. Gardiner emphasized the funding’s significance in advancing mineral exploration and development, promoting local economic growth, and addressing the raw material needs of the energy transition.

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