LONDON: Central Asia Metals PLC has agreed to acquire Cygnus Metals Ltd. in an all-scrip transaction valued at approximately A$232 million, adding a high-grade copper-gold development project in Quebec, Canada, to the London-based miner’s portfolio.
Under the deal to be implemented through an Australian court-approved scheme of arrangement, Cygnus shareholders will receive 0.06 new Central Asia Metals shares for each Cygnus share held. The consideration values each Cygnus share at A$0.176, representing a 60% premium to Cygnus’ closing price of A$0.11 on June 1.
Following implementation, existing Central Asia Metals shareholders are expected to own about 70% of the enlarged company, with Cygnus shareholders holding approximately 30%.
The acquisition adds the Chibougamau Project, a wholly owned high-grade copper-gold deposit in Quebec, to Central Asia Metals’ existing producing assets in North Macedonia and Kazakhstan. According to Cygnus’ latest mineral resource estimate from late 2025, the project contains 6.4 million tonnes at 2.3% copper, 0.8g/t gold and 7.6g/t silver in the measured and indicated categories, plus 8.5 million tonnes at 2.1% copper, 1.7g/t gold and 7.9g/t silver in the inferred category.
“We see this transaction as a compelling opportunity to add a high-grade copper-gold asset that fits well alongside our existing operations,” Nick Clarke, Central Asia Metals’ non-executive chairman, said in a statement.
Cygnus shareholders representing approximately 29% of shares on issue have indicated they intend to vote in favor of the scheme, subject to certain qualifications.
The scheme meeting is expected in September 2026, with implementation shortly thereafter. The transaction requires approval from at least 75% of votes cast by Cygnus shareholders and a simple majority excluding certain related parties under Canadian securities rules.
Central Asia Metals also plans to use reasonable endeavors to apply for listing its ordinary shares on the Toronto Stock Exchange or TSX Venture Exchange before implementation, providing North American trading access while maintaining its AIM London listing.
“The addition of this high-grade copper-gold project in a tier-one jurisdiction represents a material step to strengthening our portfolio,” said Gavin Ferrar, Central Asia Metals’ chief executive officer.
Central Asia Metals reported free cash flow of US$56 million in fiscal 2025 and declared full-year dividends of 12 pence per share. The company has issued 2026 production guidance of 12,000-13,000 tonnes of copper cathode, 18,000-20,000 tonnes of zinc-in-concentrate and 26,000-28,000 tonnes of lead-in-concentrate.
“This transaction is a true win-win outcome for both sets of shareholders,” said David Southam, Cygnus’ executive chairman. “CAML has all the necessary experience in underground mining, processing, dry stack tailings and concentrate production to deliver the Chibougamau Project.”
The deal remains subject to shareholder and court approvals.
