Central Asia Metals (AIM: CAML) announced it is acquiring Cygnus Metals (ASX: CY5, TSXV: CYG) for approximately A$232 million ($166 million). The definitive agreement, made public on Tuesday, involves a share exchange offering 0.06 newly issued CAML shares for each Cygnus share, valuing Cygnus shares at A$0.176 based on CAML’s closing price on June 1.
The transaction represents a 60% premium over Cygnus’ last closing price of A$0.11 and is subject to shareholder approval, with a meeting planned for September. CAML shareholders would retain approximately 70% of the combined company, while Cygnus investors would hold the remaining 30%. The Chibougamau copper-gold project included in the deal holds significant resources, with about 149,000 tonnes of copper and 167,000 ounces of gold in measured and indicated resources.
CAML currently operates the Sasa underground zinc-lead mine in North Macedonia and the Kounrad copper operation in Kazakhstan, expected to produce between 12,000-13,000 tonnes of copper cathode this year. The acquisition aims to enhance CAML’s portfolio and expand its presence in North America, with plans to list on the Toronto Stock Exchange or TSX Venture Exchange post-completion.
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