25th Nov 2013 12:03
LONDON (Alliance News) - Central Asia Metals PLC Monday said it has entered into an agreement to acquire a 50% equity interest in Copper Bay Ltd. for USD3.2 million.
The AIM-listed copper, base and precious metals producer, with operations in Kazakhstan and Mongolia, said Copper Bay's principal asset is the 100% owned Chanaral Bay Copper Project in Chile.
Copper Bay will use the proceeds from the investment to prepare a pre-feasibility study over the next 12 months for the Chilean project, which currently holds a non-JORC-compliant resource of roughly 116 million tonnes with an average grade of 0.25% copper, or 288,000 tonnes of contained copper. JORC refers to the Joint Ore Reserves Committee code, an Australasian standard for measuing mineral reserves.
Central Asia Metals said after the pre-feasibility study, it has the option to further invest USD3.0 million to increase its interest in Copper Bay to 75%, with the funds being used to complete a definitive feasibility study.
Central Asia Metals shares were down 0.2% to 156.75 pence Monday.
By Tom McIvor; [email protected]; @TomMcIvor1
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