Disposal of Copper Bay
Completed sale of 76.1% stake in Copper Bay copper tailings project in Chile to Guardian Metals for up to $7.5m.
- Consideration for 76.1% stake $7.5m
- First instalment payable at 7,500 tonnes copper production
- Final instalment payable at 15,000 tonnes copper production
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Central Asia Metals plc (AIM: CAML) announces the completion of the sale of its 76.1% shareholding in Copper Bay Ltd ('CBL') to Guardian Metals PLC ('GMP'). CBL, via its subsidiaries, holds the mineral rights to a copper tailings project in Chile.
GMP's acquisition of CAML's 76.1% shareholding has triggered compulsory 'drag' rights over the remaining 23.9% held by minority shareholders, and that interest has also been acquired by GMP.
The consideration for CAML's 76.1% interest will be its pro rata share of the overall consideration for 100% of CBL, which comprises a total of $7.5 million in cash payable in two equal deferred instalments. The first instalment of $3.75 million will become payable on the production of 7,500 tonnes of copper (either in cathode or concentrate form) by the CBL assets, and the balance of $3.75 million will become payable when that production reaches 15,000 tonnes.
CAML was advised on the disposal of CBL by Argent Partners.
Gavin Ferrar, Chief Executive Officer, commented:
"We are delighted to have concluded this sale with Guardian Metals, which we believe offers the Copper Bay project a path to future development for the benefit of all stakeholders. We previously wrote down the carrying value of CBL to zero, and this transaction thus offers the potential to realise additional value for CAML shareholders in the future."
Cleaned text: letterheads, contacts and legal notices removed. View the original announcement ↗ · Company filings. Not investment advice.