Central Asia Metals to invest in Aberdeen Minerals to explore copper and nickel in Scotland
Central Asia Metals plc (AIM: CAML) has announced a strategic investment of £3 million in Aberdeen Minerals Limited, acquiring a significant 28.7% stake in the junior exploration company. This initial investment, made through the subscription for 35,294,117 new ordinary shares at 8.5 pence per share, marks CAML’s entry into a focused exploration endeavor aimed at unlocking the potential of the Arthrath Project in Aberdeenshire, Northeast Scotland, alongside other promising targets in the region.
The investment in Aberdeen Minerals complements Central Asia Metals’ existing portfolio, enhancing the company’s exposure to essential base metals crucial for the green energy transition. Aberdeen’s exploration activities at Arthrath have already highlighted the presence of scalable copper-nickel-cobalt mineralisation, backed by encouraging drilling and geophysics results and a solid exploration model for high-grade base metal sulphides at depth.
Louise Wrathall, CAML’s Executive Director of Corporate Development, will join Aberdeen’s board, reflecting CAML’s commitment to supporting Aberdeen’s exploration efforts. Furthermore, CAML has been granted warrants for an additional £2 million investment at 11 pence per share, potentially increasing its stake in Aberdeen to 37.8%.
CAML’s investment will finance approximately 10,000 meters of drilling at Arthrath in two phases, aiming to confirm the continuity of high-grade mineralised intersections. Success in this drilling campaign could lead to the preparation of a Mineral Resource Estimate (MRE) and initial financial studies. Additionally, the investment will support Aberdeen’s metallurgical test work in collaboration with the UK Automotive Transformation Fund, soil geochemistry, ground geophysics, and further drilling of district-scale targets.
The completion of this investment is contingent upon several customary closing conditions, including shareholder resolutions in Aberdeen’s general meeting, UK National Security and Investment Act clearance, and merger clearance under the Republic of North Macedonia’s competition law.
Wrathall’s statement emphasizes CAML’s belief in Aberdeen’s potential and its established local presence in Northeast Scotland. This partnership aims to uncover the base metal potential in the region, with Central Asia Metals actively exploring other opportunities to contribute to its long-term growth.