REG - Central Asia Metals - Investment in Aberdeen Minerals Ltd

Central Asia MetalsAnnouncement

25/03/2024 07:00

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RNS Number : 0573I  Central Asia Metals PLC  25 March 2024

25 March 2024

CENTRAL ASIA METALS PLC

('CAML' or the 'Company')

Investment in Aberdeen Minerals Ltd

Central Asia Metals plc (AIM: CAML) announces a conditional investment of £3
million in Aberdeen Minerals Limited ('Aberdeen') to acquire a 28.7%
shareholding (the 'Initial Investment'). The Initial Investment will be
undertaken through a subscription for 35,294,117 new ordinary shares in
Aberdeen at a price of 8.5 pence per ordinary share. In addition, CAML will
receive warrants to invest an additional £2 million at a price of 11 pence
per share, which would increase CAML's ownership of Aberdeen to 37.8% assuming
no further changes to Aberdeen's issued share capital.

 

Key Highlights

-      The investment in Aberdeen represents a low-cost entry for CAML
into a focused junior exploration company which is actively exploring the
Arthrath Project in Aberdeenshire, Northeast Scotland, and several promising
targets in the underexplored surrounding district

-      This investment complements CAML's existing portfolio, further
augmenting the Company's exposure to the base metals market, which is
essential to facilitating the green energy transition

-      Aberdeen has already demonstrated the presence of scalable
copper-nickel-cobalt mineralisation at Arthrath, encouraging drilling and
geophysics results, and a compelling exploration model for high grade base
metal sulphides at depth

-      The CEO of Aberdeen, Fraser Gardiner, and the geological team are
based in close proximity to the project, with strong local relationships and a
7,400-hectare land position.

-      CAML's overall investment will fund:

o  Approximately 10,000 metres of drilling in two phases at Arthrath, aimed
at determining the continuity of the high-grade mineralised intersections
already identified at depth;

o  Should this drilling be successful, the preparation of a Mineral Resource
Estimate ('MRE') and scoping level financial studies would be undertaken;

o  The continuation of Aberdeen's grant-supported metallurgical testwork in
association with the UK Automotive Transformation Fund, a funding programme
created to support the large-scale development of a high-value end-to-end
electrified automotive supply chain in the UK; and

o  Soil geochemistry, ground geophysics and some exploratory drilling of
district scale targets and ongoing generative work across the prospective
Northeast Scotland region.

-      As part of the investment, and whilst the Company's shareholding
remains above 10% of Aberdeen's issued share capital, CAML will have the right
to nominate a director to the board of Aberdeen. Louise Wrathall, CAML's
Executive Director of Corporate Development, will join the Aberdeen board upon
completion of the Initial Investment.

-      Additionally, under the terms of the Initial Investment, CAML will
be granted warrants to subscribe for 18,181,818 ordinary shares, which are
exercisable immediately and expire upon receipt of certain technical results,
aligning with Aberdeen's budget.

 

Completion of the investment is subject to the customary closing conditions,
as well as:

-      The approval of certain resolutions at a general meeting of
Aberdeen's shareholders;

-      The granting of clearance regarding the UK National Security and
Investment Act 2021 ('NSI'); and

-      The granting of merger clearance in respect of notification
requirements under the Republic of North Macedonia's Law on the Protection of
Competition.

 

Louise Wrathall, CAML Executive Director of Corporate Development, commented:

"As a focused junior explorer with its CEO and exploration team based in
Northeast Scotland, Aberdeen is well placed to undertake exploration in an
exciting area that is prospective for copper and nickel mineralisation.
Importantly, we believe Aberdeen has built an impressive land package in
Aberdeenshire and has a firm foundation of strong local relationships.

 

"We have been impressed with the Aberdeen team and its approach to
exploration, and we look forward to working together to discover the extent of
the base metal potential in this area of Scotland.

 

"Our wider business development activities continue as we maintain our work
appraising other accretive and potentially transformational opportunities that
can contribute to CAML's long-term growth."

 

About Aberdeen Minerals Ltd

Aberdeen Minerals is a privately owned UK company focused on the exploration
and development of base metal deposits in Northeast Scotland. Active since
2018, the company has partnered with landowners through exclusive land access
and exploration agreements over geologically prospective areas of
Aberdeenshire. Demand is growing for the metals that the Company targets in
Northeast Scotland, which are strategically important for long term,
responsibly sourced and secure supplies of the raw materials critical to the
transition to a green economy in Scotland and the UK.

 

For additional information on Aberdeen, visit the Company's website at
https://aberdeenminerals.com/.

For further information contact:

 Central Asia Metals                             Tel: +44 (0) 20 7898 9001
 Nigel Robinson
 CEO
 Gavin Ferrar
 CFO
 Louise Wrathall                                 louise.wrathall@centralasiametals.com
 Director of Corporate Development
 Emma Chetwynd Stapylton                         emma.chetwyndstapylton@centralasiametals.com
 Investor Relations Manager

 Peel Hunt (Nominated Advisor and Joint Broker)  Tel: +44 (0) 20 7418 8900
 Ross Allister
 David McKeown

 Georgia Langoulant

 BMO Capital Markets (Joint Broker)              Tel: +44 (0) 20 7236 1010
 Thomas Rider
 Pascal Lussier Duquette

 BlytheRay (PR Advisors)                         Tel: +44 (0) 20 7138 3204
 Tim Blythe
 Megan Ray

Note to editors:

 

Central Asia Metals, an AIM-listed UK company based in London, owns 100% of
the Kounrad SX-EW copper project in central Kazakhstan and 100% of the Sasa
zinc-lead mine in North Macedonia. The CAML Exploration subsidiary was
recently formed to progress early exploration opportunities in Kazakhstan.

For further information, please visit www.centralasiametals.com
(http://www.centralasiametals.com/)  and follow CAML on Twitter at
@CamlMetals and on LinkedIn at Central Asia Metals Plc

 

 

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