REG - GETECH Group plc East Star Resources - Copper Exploration Joint Venture

GetechAnnouncement

29/02/2024 07:00

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RNS Number : 8656E  GETECH Group plc  29 February 2024

Getech Group plc

("Getech" or the "Company")

Copper Exploration JV in Kazakhstan

with Asset Participation Rights

Getech, a world-leading locator of subsurface resources, is pleased to
announce it has entered into a joint venture agreement with East Star
Resources plc ("East Star"), a London listed Kazakhstan focused copper
exploration company, to pursue copper exploration in Kazakhstan. The joint
venture will be conducted through a subsidiary established specifically for
this purpose (the "JV Company").

Utilising its proprietary data, enhanced by in-house Artificial Intelligence
(AI) capabilities, Getech will conduct a mineral systems analysis and
structural interpretation for sedimentary-hosted copper to pinpoint
prospective areas in mineral rich, yet underexplored basins in Kazakhstan.
East Star will lead the application process for the tenements / licenses and
spearhead operational activities.

In return for its services, Getech will have a call option to obtain shares at
nil cost in the JV Company, equivalent to 5% of its issued capital, once
exploration licenses are secured within the project areas. Getech's 5% share
is protected against dilution until a decision to mine has been made at one or
more of the mining licenses.

The transaction is the first example of Getech implementing its equity
participation strategy. The new agreement demonstrates a change from
generating fee income from subsurface searches to asset participation with the
potential to generate substantially more value from its unique data.

Copper is crucial for the energy transition as it is a key component in
renewable energy systems, including wind turbines, solar panels and electric
vehicles. Its superior conductivity and durability make it indispensable in
efficiently transmitting and storing renewable energy. The forecasted
significant shortfall in copper supply starting from 2027 underscores the
critical importance of copper exploration.

Richard Bennett, CEO at Getech, commented:

"This collaboration presents us with significant upside potential and minimal
risks. In the event of a successful exploration campaign, we obtain a 5% stake
in one or more mining assets. The option has transformative value creation
potential, which we can monetise at various stages. This is therefore an
exciting opportunity for Getech, and we are progressing other similar
transactions where we are looking to leverage our data and expertise to secure
asset participation in promising locations."

Alex Walker, CEO, East Star commented:

"Sediment-hosted copper deposits account for around 20% of global copper
production and have the potential for Tier 1 deposits being sought by the
global major mining companies. At no upfront cost to East Star, this play-type
adds a potential third strand to East Star's copper strategy, which includes a
VMS deposit and a BHP-backed porphyry exploration programme. We look forward
to working with Getech to apply their unparallelled database and modern
geoscientific expertise to underexplored basins in Kazakhstan."

 

For further information, please contact:

 Getech Group plc

 Richard Bennett, CEO                             Tel:  0113 322 2200

 Cavendish Capital Markets Limited

 Neil McDonald / Pete Lynch (Corporate Finance)   Tel:  0207 397 8900

 Michael Johnson / Dale Bellis (Sales)

 Novella Communications                           Tel: 0203 151 7008
 Tim Robertson / Safia Colebrook
 getech@novella-comms.com

 

Notes to editors:

 

About Getech

Getech is a leading locator of the energy and mineral resources essential
for the world's energy transition. Getech's unique data encompassing the most
recent 400 million years of Earth's evolution, coupled with its geoscience
expertise, AI-driven analytics and extensive GIS capabilities, enables the
company to provide valuable and actionable insights to support resource
discovery and development.

The company's client portfolio is wide-ranging, from governments,
municipalities, natural resources and energy companies to consumer goods and
computing services companies, all striving to become energy and minerals
self-sufficient and drive towards net zero.

Founded in 1994 Getech is listed on the Alternative Investment Market of the
London Stock Exchange ("AIM"), with ticker symbol GTC.

For further information, please visit www.getech.com (http://www.getech.com/)
.

About East Star

East Star Resources is focused on the discovery and development of copper
resources in Kazakhstan. With eight licences covering 1,190.3 km² in three
mineral rich districts of Kazakhstan, East Star is undertaking exploration
programmes, applying modern geophysics to discover minerals in levels that
were not previously explored. East Star's most advanced project is a copper
deposit on the world-class Rudny Altai VMS Belt where the Company is working
towards the delivery of a JORC compliant open pit copper resource close to
infrastructure, within trucking distance of third-party mills with excess
capacity. East Star's management are based permanently on the ground,
supported by local expertise, a joint venture with the state mining company on
certain projects, and grant funding from BHP through the BHP Xplor programme
for copper porphyry exploration.

 

 

 

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