Central Asia Metals completes $7.5 million sale of Copper Bay stake

Central Asia Metals PLC on Wednesday announced it has completed the sale of its 76.1% stake in Copper Bay Ltd, which holds the mineral rights to a copper tailings project in Chile.

The base metals producer with operations in Kazakhstan and North Macedonia said the disposal was made to Guardian Metals PLC for a total of $7.5 million in cash, and it has triggered compulsory ’drag’ rights over the remaining 23.9% interest held by minority shareholders.

As a result, Guardian Metals has now acquired that remaining interest in Copper Bay.

Payment will be made in two equal deferred instalments, the first $3.75 million instalment of which will become payable on the production of 7,500 tonnes of copper in either cathode or concentrate form by the Copper Bay assets.

The second instalment will become payable when production reaches 15,000 tonnes.

‘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,’ said Chief Executive Officer Gavin Ferrar.

Shares in Central Asia Metals were down 1.9% at 147.00 pence in London on Wednesday afternoon. The stock is down 28% over the past year.

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