Central Asia Metals (AIM:CAML) has entered into a definitive scheme implementation deed to acquire Cygnus Metals (ASX:CY5), which will add the Chibougamau Project in Canada to its existing portfolio.
Under the deal, each Cygnus shareholder will be entitled to 0.06 new Central Asia Metals shares for each share held. The terms of the scheme value each Cygnus share at $0.176 based on the closing price of £1.56 ($2.92) per Central Asia Metals share on 1 June 2026.
The transaction gives Cygnus an equity value of $232 million.
Central Asia Metals CEO Gavin Ferrar says the addition of the Chibougamau Project represents a material step in strengthening the company’s portfolio.
“We have been impressed by the quality and experience of the Cygnus team and look forward to working closely with them to integrate the Chibougamau Project, complete an updated preliminary economic assessment, and advance the asset towards a Feasibility Study,” Ferrar says.
Cygnus Metals Executive Chairman David Southam says this transaction is a “win-win outcome” for both companies.
“Cygnus shareholders can maintain their exposure to the Chibougamau Project while reaping the benefits of a highly respected base metals operating company that produces free cashflow and pays dividends,” Southam says.
“These strengths are expected to mitigate for existing shareholders certain future financial burdens associated with project development. Central Asia Metals has all the necessary experience in underground mining, processing, dry stack tailings, and concentrate production to deliver the Chibougamau Project.”
More about Chibougamau
The Chibougamau Project hosts a resource of 6.4 million tonnes @ 2.3% copper, 0.8 grams per tonne gold, and 7.6g/t silver in the measured and indicated categories, as well as an 8.5 million tonne inferred resource @ 2.1% copper, 1.7g/t gold, and 7.9g/t silver.
Baseline environmental and engineering studies for the Chibougamau Project have begun. The project will be progressing through the permitting process in parallel with ongoing resource drilling and advanced study work.
Once in production, the Chibougamau Project has potential to add meaningfully to Central Asia Metals’ annual copper-equivalent output and cash flows.
Central Asia Metals is a UK-incorporated base metals producer headquartered in London. The company owns the Sasa underground zinc-lead mine in North Macedonia, Europe and the Kounrad solvent extraction and electrowinning copper operation in Central Kazakhstan.
Cygnus Metals is a diversified critical minerals explorer and developer with assets in Canada and Western Australia.
Write to Aaliyah Rogan at Mining.com.au
Images: Cygnus Metals