19th Jan 2017 16:23
LONDON (Alliance News) - Amedeo Resources PLC said Thursday it has acquired a 2.5% stake in Iran-based copper miner Ganjine Kani Co.
Amedeo said it paid USD500,000 for the interest in Ganjine and has a five-year option to acquire a further 5% stake for USD2.0 million.
To date, Ganjine has extracted around 1.0 million tonnes of ore from its three mines, with an average copper grade of 0.9%. Iranian studies estimate its producing mine may have "at least" 6.5 million tonnes of copper ore, although this has not been confirmed to international standards, said Amedeo.
Amedeo said MGR Resources PTE Ltd, a trader and broker in iron ore in which Amedeo has a 49% stake, will work with Ganjine to increase its supply of copper to East Asia and China.
"We are pleased to have made this acquisition which will allow MGR to widen the commodities it trades and brokers and, at the same time, give MGR a captive supply of copper," said Glen Lau, chief executive officer of Amedeo.
Shares in Amedeo Resources were up 8.0% at 27.55 pence Thursday afternoon.
By Adam Clark; [email protected]
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