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17/06/2024
Mining News

IG Asia acquires 75% stake in Pribrezhniy copper deposit in Kazakhstan

IG Asia has entered into a conditional agreement to purchase a 75% stake in the Pribrezhniy copper deposit from Rio Tinto International Holdings, with the remaining 25% owned by KazGeology, a Kazakhstan state geological resources entity. This acquisition positions IG Asia as a significant player in copper exploration and development within the region.

Situated at the eastern end of the Kounrad group of copper deposits, the Pribrezhniy deposit is part of a broader project license area spanning 832km², encompassing various commercial discoveries and existing mining infrastructure such as access to power, water, railways and a smelter. With the project license valid until February 2029, IG Asia has ample time to conduct feasibility studies on Pribrezhniy and advance two additional prospects. Rio Tinto Exploration Kazakhstan has already conducted a scoping level engineering analysis on the project.

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Under the terms of the agreement, IG Asia will pay Rio Tinto $2.23 million (S$3.03 million), primarily for the reimbursement of exploration work conducted in 2023. Additionally, IG Asia has committed to further expenditures of $11 million to achieve a prefeasibility-level project by 2029, with an additional one-time payment of $20 million and a net smelter return (NSR) royalty payable to Rio Tinto upon reaching certain production milestones.

The Pribrezhniy project joins IG Asia’s flagship assets, including the TN5 project in Mongolia, strategically positioned between the world-class Oyu Tolgoi and Kharmagtai deposits. IG Asia plans to undertake technical work at Pribrezhniy to enhance the project’s potential through increased mineral inventory and optimized processing. Moving forward, IG Asia intends to utilize the expenditure commitment of $9 million to execute various projects, including the Oxide Only Project, Combined Sulphide Project, and Definition Phase Studies, up until February 2029.

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